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Public Procurement and the Development of the Swedish Telecommunications Market
Linköping University, Department of Management and Engineering. Linköping University, The Institute of Technology.
2008 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis describes and analyses public procurement and its processes in general against the framework of industrial marketing and purchasing. In particular, it focuses on the public procurement of telecommunications (“telecom”) and its effects on the de-monopolization and development of the Swedish telecom market based on empirical material from three case studies, interviews and publicly available written sources.

Public procurement is a significant part of any country’s economy. There is a plenitude of publicly available data due to Sweden’s and other public administrations’ transparency policies. Despite this fact, public procurement has been poorly covered in business administration literature when compared with the private sector’s purchasing and selling activities. This thesis tries to bridge the theoretical gap between knowledge of purchasing in business-to-business (“B2B”) and public procurement.

Public procurement can be considered as a special type of B2B transaction and, particularly in the case of bigger procurements, of project purchasing. The important difference is that public procurement must follow specific and stricter legislation compared with the private sector’s purchasing activities. Among other things, public procurement law restricts contact between the procuring organisation and tenderers in some phases of the procurement process, allows no changes after the publishing of the Request for Proposal and opens the possibility to appeal to the court if any party considers that the procuring organisation has not acted in accordance with the public procurement rules.

The telecom market has, over a period of thirty years, been transformed from a monopoly with practically no choice to a fully competitive market with several service and equipment providers as well as different pricing schemes and competing technical solutions. The development of the Swedish telecom market can be divided into four stages: Full monopoly, partial de-monopolization, full competition and system integration. The main driving forces behind this development have been the political decision to liberate the telecom market and achieve full competition as well as rapid and diverse technical development, which includes the introduction of mobile communication, broadband and Internet.

At the same time, the dependency on well functioning telecom in the public sector is constantly increasing due to political agendas such as agencies availability 24 hours 365 days (“24/7 agency”), use of telecom as a means of rationalization and increased internal efficiency as well as new usages in areas that previously were not using telecom in their daily routines. The public procurement of telecom has changed from being a relatively simple administrative issue through being of technical concern to becoming more and more of strategic importance, especially in case of outsourcing and/or procuring system integration from a prime contractor.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2008. , 199 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1219
Keyword [en]
Public procurement, telecommunications, telecom market development, electronic procurement
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-16587ISBN: 978-91-7393-773-3 (print)OAI: oai:DiVA.org:liu-16587DiVA: diva2:158839
Public defence
2008-11-21, ACAS, Hus A, Campus Valla, Linköpings universitet, Linköping, 13:15 (English)
Supervisors
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2013-08-29Bibliographically approved
List of papers
1. Public Procurement as a Change Agent: The Case of the Swedish Telecommunications Market Development
Open this publication in new window or tab >>Public Procurement as a Change Agent: The Case of the Swedish Telecommunications Market Development
2009 (English)In: The Journal of The Institute of Telecommunications Professionals, ISSN 1755-9278, Vol. 3, no 1, 31-40 p.Article in journal (Other academic) Published
Abstract [en]

This article investigates how public procurement can be used as a change agent to initiate and promote the development in the telecom industry. From the perspective of the buyers of telecommunication, four phases in the development of the telecom market are mapped; from full monopoly to full competition and from one specific solution for a specific function to competing technologies that can solve the same requirement. Five distinctive purchasing roles driving the development are identified based on three generic purchasing roles (rationalization, development and supplier base structuring). This longitudinal, from the 1980s to 2006, study is based on the situation in Sweden, which has been at the forefront of the transformation of the telecom sector in Europe. Obtaining a better understanding of the purchasing role beyond the actual contract in driving restructuring of the market and technological solutions is one of the important implications from this study.

Place, publisher, year, edition, pages
Midds, United Kingdom: The Institute of Telecommunications Professionals, 2009
Keyword
Telecommunications, offerings, public procurement, market changes, technology development, system integration
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-16580 (URN)
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2014-03-07Bibliographically approved
2. Sourcing, Insourcing and Outsourcing of Telecom for the Swedish Public Sector
Open this publication in new window or tab >>Sourcing, Insourcing and Outsourcing of Telecom for the Swedish Public Sector
2010 (English)In: Strategic Outsourcing, ISSN 1753-8297, E-ISSN 1753-8300, Vol. 3, no 2, 144-162 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – The purpose of this paper is to describe and analyze how and why the question of outsourcing or insourcing within a specific empirical context, telecommunications services, has been handled differently over time.

Design/methodology/approach – A longitudinal study on procurement of telecommunications for the Swedish public sector's organizations during the last 40 years. The empirical data were collected from three case studies and one research project.

Findings – The paper identifies four phases: from a simple buying situations, via insourcing of equipment in order to produce some services in-house, to outsourcing of telecommunications in a first step and to outsourcing of combined data and telecommunications in a second step. Three major contextual determinants are identified for the public procurement of telecommunications services: de-monopolization, rapid technical development and pressure on public agencies from politicians, citizens and others. In addition to low cost, core competence, control and flexibility, the paper identifies business development as a new logic for outsourcing and insourcing.

Research limitations/implications – This study is limited to Sweden and public procurement of telecommunications services. Therefore, it would be of value to test if the development of public procurement of telecommunications in other countries passed through the same phases and with the same determinants.

Practical implications – Many of the findings are valid for public procurement in other countries, especially in the European Union due to the common legislative base for public procurement.

Originality/value – The paper fulfills an identified need to carry out a longitudinal study of changes in public procurement of telecommunications through the different phases of in/outsourcing.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2010
Keyword
Public procurement; Telecommunications; Sweden; Outsourcing; Sourcing
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-16581 (URN)10.1108/17538291011060358 (DOI)
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2017-12-14Bibliographically approved
3. Broadband: a municipal information platform: Swedish experience
Open this publication in new window or tab >>Broadband: a municipal information platform: Swedish experience
2005 (English)In: International Journal of Technology Management, ISSN 0267-5730 , Vol. 31, no 1-2, 47-63 p.Article in journal (Refereed) Published
Abstract [en]

Sweden was one of the first countries to adopt a policy for the introduction of broadband and internet access for everybody. Swedish national policy for the expansion of broadband infrastructure has for the last few years been centered on the build-up of urban networks. Studies of the build-up process show that municipalities in their efforts follow a rather similar way to start the process of introducing broadband, but in spite of that strategies as well as tempo vary enormously between municipalities, due to geographical, economic, social and cultural factors. Tranas, a small municipality in the southern part of Sweden, is an example of an early and successful implementation of urban networks. Tranas' strategy involves not only politicians; it involves representatives from schools, local businesses and essentially all citizens of the community.

Place, publisher, year, edition, pages
IngentaConnect, 2005
Keyword
urban networks, broadband, smart community, technology and/or demand-driven development, municipalities, policy for implication
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-16582 (URN)10.1504/IJTM.2005.006622 (DOI)
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2009-05-25Bibliographically approved
4. E-procurement of telecom services for the public sector
Open this publication in new window or tab >>E-procurement of telecom services for the public sector
2008 (English)In: International Journal of Knowledge Management Studies, ISSN 1743-8268, E-ISSN 1743-8276, Vol. 2, no 1, 7-28 p.Article in journal (Refereed) Published
Abstract [en]

E-procurement has hitherto mostly been used as a tool to make the procurement process more efficient. However, it could also be used in more explorative ways than just for digitalisation of the existing procurement process. E-procurement has a big potential when used in more innovative ways. This paper explores the conditions and possibilities in order to apply the tool of e-procurement of telecom services for the public sector. Almost every economic activity and many a social contact include the use of telecommunications. The public sector is especially depending on well functioning telecom, as telecom is a base for many services provided by the authorities. To use electronic tools for procurement of telecom could be of great help. To do so, it is of great value to have a structured, modular and scalable model with standardised interfaces and defined functions on individual and organisational levels.

Place, publisher, year, edition, pages
Interscience Communications, 2008
Keyword
E-procurement, public procurement, telecommunications, e-government, procurement model
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-16583 (URN)10.1504/IJKMS.2008.016442 (DOI)
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2017-12-14Bibliographically approved
5. Process of Public Procurement of Telecom Services: the Buyer’s Perspective
Open this publication in new window or tab >>Process of Public Procurement of Telecom Services: the Buyer’s Perspective
2008 (English)In: Proceedings of the 7th Annual ISOneWorld conference 2008, Las Vegas, 2008Conference paper, Published paper (Other academic)
Abstract [en]

This paper investigates the process of public procurement of telecom, one important prerequisite for a well functioning public sector. The investigation is based on three public procurements of telecom services in Sweden, which took place at three different occasions, and decisively influenced the development of the Swedish telecom market. Different stages of the three procurements are compared. This longitudinal approach gives the possibility to follow changes in suppliers’, users’ and politicians’ attitudes, media coverage and usage of framework contracts.

Keyword
Public procurement, telecommunications, buyers’ perspective
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-16584 (URN)
Conference
7th Annual ISOneWorld conference 2008, Las Vegas, USA
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2014-03-07Bibliographically approved
6. SOTIP as a Model for Outsourcing of Telecom Services for the Public Sector
Open this publication in new window or tab >>SOTIP as a Model for Outsourcing of Telecom Services for the Public Sector
2005 (English)In: Proceedings of the 38th Hawaii International Conference on System Sciences (HICSS- 38) 2005, Hawaii, IEEE , 2005Conference paper, Published paper (Refereed)
Abstract [en]

The political intentions for the past 20 years have broadly speaking been to reduce the number of publicly owned and publicly run activities. Outsourcing is an often applied way to cut public spending by totally or partially privatize public activities. Telecommunications is an obvious outsourcing candidate as it is hardly a core activity for the public sector. Furthermore, there is today a competitive market for telecommunications services. At the same time it can be difficult to separate telecommunications from other activities as every organization's processes and virtually all employees use telecommunications services. Sweden was one of the first countries in the world to introduce full competition on the telecom market and exposed to the new ways to procure and outsource telecom services. A SOTIP (Swedish government Open Telecommunications systems Interconnection Profile) model for procurement of telecommunications services outgoing from users' needs was developed in order to meet these new requirements. A buyer or outsourcer can use SOTIP as a checklist in order to avoid mistakes by forgetting some important requirements.

Place, publisher, year, edition, pages
IEEE, 2005
Keyword
Outsourcing, public procurement, procurement model, telecommunications
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-16585 (URN)10.1109/HICSS.2005.549 (DOI)0-7695-2268-8 (ISBN)
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2009-05-25Bibliographically approved
7. The Selling Process to the Public Sector
Open this publication in new window or tab >>The Selling Process to the Public Sector
2008 (English)In: Journal of International Scientific Publications: Economy & Business, ISSN 1313-2555, Vol. 2, no 1, 82-97 p.Article in journal (Refereed) Published
Abstract [en]

This article investigates the selling process to the public sector. It is a neglected subject despite the importance of the public market and procurements to any country's economy. A model described in this article is an attempt to categorise and specify the different phases of the selling process to the public sector.

Place, publisher, year, edition, pages
Info Invest, 2008
Keyword
Public procurement, selling process, categorisation
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-16586 (URN)
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2014-03-07Bibliographically approved

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Citation style
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  • ieee
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