A483etukansi.kesken.fm Page 1 Wednesday, April 18, 2007 11:30 AM A OULU 2007 4 A 483 8 3 ACTA UNIVERSITY OF OULU P.O. Box 7500 FI-90014 UNIVERSITY OF OULU FINLAND A UNIVERSITATIS OULUENSIS C A A C T A U N I V E R S I T A T I S O U L U E N S I S T A S E R I E S E D I T O R S Anri Kivimäki SCIENTIAE RERUM NATURALIUM A SCIENTIAE RERUM NATURALIUM A WIRELESS Professor Mikko Siponen n B ri K TELECOMMUNICATION i HUMANIORA v i Professor Harri Mantila m STANDARDIZATION C ä k i TECHNICA PROCESSES— Professor Juha Kostamovaara D ACTORS' VIEWPOINT MEDICA Professor Olli Vuolteenaho E SCIENTIAE RERUM SOCIALIUM Senior Assistant Timo Latomaa F SCRIPTAACADEMICA Communications Officer Elna Stjerna G OECONOMICA Senior Lecturer Seppo Eriksson EDITOR IN CHIEF Professor Olli Vuolteenaho EDITORIAL SECRETARY Publications Editor Kirsti Nurkkala FACULTY OF SCIENCE, DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU ISBN 978-951-42-8412-0 (Paperback) ISBN 978-951-42-8413-7 (PDF) ISSN 0355-3191 (Print) ISSN 1796-220X (Online) ACTA UNIVERSITATIS OULUENSIS A Scientiae Rerum Naturalium 483 ANRI KIVIMÄKI WIRELESS TELECOMMUNICATION STANDARDIZATION PROCESSES—ACTORS' VIEWPOINT Academic dissertation to be presented, with the assent of the Faculty of Science of the University of Oulu, for public defence in Raahensali (Auditorium L10), Linnanmaa, on May 23rd, 2007, at 12 noon OULUN YLIOPISTO, OULU 2007 Copyright © 2007 Acta Univ. Oul. A 483, 2007 Supervised by Professor Juhani Warsta Professor Veikko Seppänen Reviewed by Professor Kalle Lyytinen Professor Eric Monteiro ISBN 978-951-42-8412-0 (Paperback) ISBN 978-951-42-8413-7 (PDF) http://herkules.oulu.fi/isbn9789514284137/ ISSN 0355-3191 (Printed) ISSN 1796-220X (Online) http://herkules.oulu.fi/issn03553191/ Cover design Raimo Ahonen OULU UNIVERSITY PRESS OULU 2007 Kivimäki, Anri, Wireless telecommunication standardization processes—actors' viewpoint Faculty of Science, University of Oulu, Department of Information Processing Science, University of Oulu, P.O.Box 3000, FI-90014 University of Oulu, Finland Acta Univ. Oul. A 483, 2007 Oulu, Finland Abstract Information and communication technology are among the fastest growing industry sectors globally. One enabler for fast grow is created standards, which enables compatibility between technologies. This dissertation aims to create new knowledge concerning how standardization affects businesses that develop and sell technologies and technology-based products and services. More precisely this study focuses on the wireless telecommunication, which needs standards to function globally. This globalization and standardization development sets requirements for companies and organizations in the business; they are expected to be flexible, innovative, efficient, international, well resourced and cooperative. In order to achieve this on a global scale multiple actors – such as manufacturers, operators and developers – need to negotiate with a number of regional standardization bodies. The standardization environment is under constant change; however, standards as such should remain stable. Understanding standardization processes has become important because new technologies, new forms of business organizations, trade issues and new institutions are emerging. All actors' in the standardization process should more thoroughly understand their role in the process, and recognize the important relations between the stages. From the actors' point of view the most beneficial issue in the wireless standardization process are networking and legitimacy of the process. In this research we are interested in researching empirically how actors' can possibly benefit from standardization processes in their businesses. As actors' we regard as manufacturers, operators, regulators, standardization organizations and SMEs. It is important to identify key factors/inhibitors that shape the standardization process from the actors' point of view. The theoretical framework of this study is built on the institutional theory. This theory provides a perspective as to how the actors can assimilate and act as part of the standardization environment. The broad reach of the institutional perspective is its major strength, making it potentially relevant to all levels of analyzis and all time spans, from micro-level interactions to large-scale changes in nation- states. Standardization creates opportunities for actors such as market and technology insights, internationalizing, and networking. The a priori dynamic process model developed shows the complexity and length of the wireless standardization process. From the process point of view the important points are the openness of the process, networking, cooperation, technological points and changes in the process. The new points which arose from the material include IPR issues, research, open atmosphere, globalization, licensing issues, flexible working procedure and interpretation of standards and document management. The empirical data of this study is derived by interviews. The interviews were carried out during autumn 1998, 2000 and winter 2004. 35 experts were interviewed from different bodies involved in 3rd generation wireless standardization and software companies. Keywords: business, institutional theory, regulator, SME, standardization environent, standardization organizations, wireless standardization process For my sons Joona and Henrik Acknowledgements I first entered the world of wireless standardization when I got my first permanent posi- tion after gaining my BA. The position was as a research and development assistant in Nokia Mobile Phones, and this was over a decade ago. I gained real experience of the world of standardization and the roles of different actors. I must say that at the time I nev- er imagined that I would some day write a thesis on the topic. After some years at work I went back to the University of Jyväskylä to continue my studies and I found myself in the Stamina Group (1998-2000, funded by the Finnish Academy), which was doing research into telecommunications standardization. I must thank Prof. Kalle Lyytinen for taking me into his group to write my Masters thesis on 3rd generation telecommunications standard- ization. I am also grateful to my former colleagues in the Stamina group: warm thanks to Juha Knuuttila, Vladslav Fomin, Ari Manninen and Ping Gao. I will always remember the interviews which we did together and discussions about standardization in our coffee breaks. Now standardization research has led us to different places. In 2001, I found myself working as a senior technology advisor for Tekes in Oulu. The day-to-day work took up my time for a couple of years, but I didn’t forget the research. The research started to advance when I joined INFWEST.IT. At that time I also met my supervisors. The INFWEST.IT seminars were important because of their interesting lectures and the practical advice given by the senior lecturers, but also for the peer sup- port provided during the seminars. As an independent researcher it was a great place to meet other researchers and share experiences. I started my research again in autumn 2003, when I was expecting my first baby. My supervisors, Professor Juhani Warsta and Profes- sor Veikko Seppänen have not spared their efforts. I thank them for their guidance, inspi- ration and endless positive attitude towards this research. They have always been avail- able to read my work-in-progress writings, and their feedback has been very valuable and encouraging to me. I have been conducting this research alone, and without our regular meetings during the process it would have been difficult. I also want to express my most sincere and special thanks to my external reviewer, Professor Michael D. Myers, Associ- ate Dean (Postgraduate and Research) of the University of Auckland Business School. He read the theory part in its early stages, and his comments reassured me that I was on the right path. As with any scientific research, the role of empirical data is invaluable. The empirical part of the study would not have been possible without the co-operation of the different actors: the manufacturer, operators, regulators, standardization organizations and SMEs. Since anonymity is to be preserved, no names are cited here. Without these people, how- ever, the claims made in this thesis could not have been empirically explored or validated. I would like to express my gratitude to all these companies and individuals in Finland, Belgium, Germany, Denmark, Switzerland and France for participating in this research project and sharing their experiences and ideas. I would like to thank the two pre-examiners of this study, Kalle Lyytinen, Iris S. Wol- stein Professor in the Department of Information Systems at the Weatherhead School of Management, Case Western Reserve University, US, and Professor Eric Monteiro from the Department of Informatics, University of Trondheim, Norway, for their valuable com- ments and recommendations. I am grateful to Mark Smith, who helped by proofreading the English of my thesis. I am most grateful to Helena Saari, for checking the layout of this dissertation. The financial support of INFWEST.IT, the Tauno Tönning Foundation and the Alfred Kordelin Foundation has further assisted my work. With their support I was able to pay for child care for my two little boys, and work and concentrate on writing at home. Finally, I thank my family and friends, many of whom do not even have any idea what my thesis is all about. Thanks for occupying my mind with other important issues. I wish to express my warmest gratitude to my parents, Sisko and Pentti. I want to thank my dear sisters, Outi and Tiina and their families, for their love, friendship and for joyful moments together. I have been very lucky to been blessed with great friends in my life. You have all put up with me through the times of stress, shared the joys and sorrows of life with me, encouraged me onwards, and have had faith in my ability to get this work completed. Thank you from the bottom of my heart. Also I want to thank my parents-in-law Maila and Kalevi. Thanks also to Professor Helena Karasti, with whom I could share not only my research problems, but also my child care and sailing experiences. I want also to thank my working colleagues in Oulu and Helsinki for their interest and support for this work. Without help with child care this work would have been impossible to do. The warm- est thanks I owe my mother Sisko and mother-in-law Maila, whose took care not only of my boys, but also of me, when I was writing. Also I want to warmly thank Anja, who was so kind, caring and flexible when taking care of the boys. Last but not least, most significant for the success of this research project was the unceasing and wholehearted support that my family gave me during this process. Thank you, my loved ones, Timo, Joona, and Henrik, for being with me at all times. You have filled my days with joy and happiness and reminded me what is important in life. Oulu, February, 2007 Anri Kivimäki