The need for speed in emerging communications markets: upgrades to advanced technology at Internet Service Providers

How and why do young firms develop distinctive skills on the frontiers of technology in evolving technologies? As a window on these processes, this study analyzes the decisions by Internet Service Providers (ISPs) to upgrade the speed of communication. In 1997 this involved 56K modem technology and Integrated Services Digital Network (ISDN) technology. We investigate why an ISP chooses to offer neither, one or both high speed data transmission technologies. Our findings are consistent with the view that scale of investment, local infrastructure's quality and explicit costs shape investment decisions by young firms in emerging markets. (C) 2001 Elsevier Science B.V, All rights reserved.