Change within the Mobile Communications Market - an initial assessment of the structural and organisational repercussions of 3G

Over the last year or so the mobile telecommunications industry has undergone a complete sea change; the initial euphoria surrounding the German and UK licensing process, where widely optimistic claims about the array of possible services and uptake were made, has been replaced by widespread anxiety and pessimism. This anxiety and pessimism is driven by the large debts that companies have incurred to enter the market, doubts as to the validity of claims that 3G will usher in a whole new era of service development and the increasing belief that subscribers will not migrate in the required numbers to the new technology. The organisational and market repercussions of 3G are addressed in the following main section that is divided into three parts. In the first part infrastructure sharing between 3G license winners is dealt with, whilst in the second mergers and acquisition activity is examined. The third part focuses on the organisational form of 3G license winners and network scale. Conclusions are then drawn in the final main section

Competitive Assessments for HAP Delivery of Mobile Services in Emerging Countries

In recent years, network deployment based on High Altitude Platforms (HAPs) has gained momentum through several initiatives where air vehicles and telecommunications payloads have been adapted and refined, resulting in more efficient and less expensive platforms. In this paper, we study HAP as an alternative or complementary fast-evolving technology to provide mobile services in rural areas of emerging countries, where business models need to be carefully tailored to the reality of their related markets. In these large areas with low user density, mobile services uptake is likely to be slowed by a service profitability which is in turn limited by a relatively low average revenue per user. Through three architectures enabling different business roles and using different terrestrial, HAP and satellite backhaul solutions, we devise how to use in an efficient and profitable fashion these multi-purpose aerial platforms, in complement to existing access and backhauling satellite or terrestrial technologies

Mobile Communications Industry Scenarios and Strategic Implications for Network Equipment Vendors

Mobile infrastructure markets have changed dramatically during the past years. The industry is experiencing a shift from traditional large-scale, hardware-driven system roll-outs to software and services -driven business models. Also, the telecommunications and internet worlds are colliding in both mobile infrastructure and services domains requiring established network equipment vendors and mobile operators to transform and adapt to the new business environment. This paper utilizes Schoemaker's scenario planning process to reveal critical uncertain elements shaping the future of the industry. Four possible scenarios representing different value systems between industry's key stakeholders are created. After this, five strategic options with differing risk and cost factors for established network equipment vendors are discussed in order to aid firm's strategic planning process. --

Network sharing and co-investments in NGN as a way to fulfill the goal with the digital agenda

The European Commission and most European countries have set ambitious broadband targets aiming to provide up to 100 Mbits to the end-customers. On back of a declining fixed market, negative growth for operators and a slow take up of fiber while maintaining high capex levels operators will ultimately be forced to take innovative approaches towards broadband investments. This paper relates co-investments in NGA to the regulatory framework in the form of SMP regulation and competition law making the conclusion that the current regulatory framework is sufficient to avoid a distorted competition on the market. A number of examples of ongoing co-investment projects are presented underscoring a growing interest for co-investments and indicating that co-investments, at this point, are not hampering competition. The mobile industry has gradually moved towards network sharing indicating a tendency towards vertical disintegration, although so far only a tendency. The ongoing structural separation of Telecom New Zealand with the establishment of a separate network and wholesale company is an indication of this development. The paper concludes by stating that regulators have appropriate tools to handle potential competition issues regarding coinvestments, that co-investments could be a vehicle for reaching the broadband targets, that there are efficiency gains for operators to make by lower Opex and capex, and ultimately giving network companies the means to utilize their balance sheet in order to increase the return.NGA,co-investment,SMP regulation,horizontal and vertical agreements,capex,network sharing,financial gearing

India: a Case of Fragile Wireless Service and Technology Adoption?

Wireless penetration and the Indian economy have grown significantly over the past few years, but how robust and sustainable is the adoption of wireless services and products? Several papers have discussed India as a wireless service and product market, and sometimes tried to assess quantitative attributes thereof. The present paper aims instead at looking, from a management point of view, at the unique underlying evolution processes, bottlenecks and risks. On specific facets, a comparison is given to adoption indicators in other key markets such as China.For example, just to illustrate highlights of these unique attributes , it is indeed surprising that such a major economy with its very large population has not yet achieved the wireless service usage and mobile terminal penetration ratios of neither an early European adopter ,nor of a recent large scale adopter like China or Russia . India has also been characterised by a surprising regulatory development process quite different from many other contexts, both in terms of its both centralised and regional structure, of very low tariffs providing almost no ROI to investors in a stable situation, and of absence of neutrality across communications technologies. At the same time, a very large fraction of the population has not , for affordability and regional coverage reasons, been able to get the access opportunities of more developed regions , leading to a distribution unbalance which is also a significant opportunity .Also , the wireless service and product adoption pattern in India , specific to communicating services , has so far been in rather sharp contrast with the widely known software and outsourcing services industry evolutions in that country .Therefore it is important to compare the most relevant known wireless service and product adoption theories, to establish from facts whether they apply in the Indian context, and, if not, suggest new or mixed theories able to explain all such facts and cast some light into its likely future structural evolution. It is of high relevance in management to validate if indeed established models apply or not in a significant case like India, just as it is also of high relevance for the main stakeholders to identify methodology able to support their analyses.The paper first provides background information on wireless, fixed, and other operators, on wireless penetration, on telecommunications infrastructure and investments, and on Indian human capital. Thereafter is analyzed in detail the relevance, or not, of five traditional technology adoption models across the Indian user base: the absorption business model, the perceived benefits business model, consumer attitudes, the globalisation business model, and finally the brand management business model. These first analyses are followed by the identification and detailed analysis of five other business models or structural processes, some rather unique to India: the two-tier migration model, large scale imported adoption without a telecommunications infrastructure & terminals industry, unstable adoption with lack of consistent public policies, knowledge sharing and productivity enhancement adoption model, and finally late foreign capital investments into a large emerging market.From the comparison of facts and background data , with these ten wireless service and product adoption models , the paper establishes which are not relevant, and which are too some degree . Furthermore the relevant business models are shown to share, further attributes of sustainability (or not) and dynamic behaviour. This allows concluding that India has had an overall quite fragile adoption and deployment path with growing tensions such as coverage, quality of service and affordability disparities. The model comparison also allows to diagnose the key three structural measures needed to reach a sustainable equilibrium from the business, economic and social points of view.India;Mobile communications;Adoption;Business models;Economic development;Infrastructure;Manufacturing;Mobile terminals;Wireless

Mobility on Demand in the United States

The growth of shared mobility services and enabling technologies, such as smartphone apps, is contributing to the commodification and aggregation of transportation services. This chapter reviews terms and definitions related to Mobility on Demand (MOD) and Mobility as a Service (MaaS), the mobility marketplace, stakeholders, and enablers. This chapter also reviews the U.S. Department of Transportation’s MOD Sandbox Program, including common opportunities and challenges, partnerships, and case studies for employing on-demand mobility pilots and programs. The chapter concludes with a discussion of vehicle automation and on-demand mobility including pilot projects and the potential transformative impacts of shared automated vehicles on parking, land use, and the built environment

Business Case and Technology Analysis for 5G Low Latency Applications

A large number of new consumer and industrial applications are likely to change the classic operator's business models and provide a wide range of new markets to enter. This article analyses the most relevant 5G use cases that require ultra-low latency, from both technical and business perspectives. Low latency services pose challenging requirements to the network, and to fulfill them operators need to invest in costly changes in their network. In this sense, it is not clear whether such investments are going to be amortized with these new business models. In light of this, specific applications and requirements are described and the potential market benefits for operators are analysed. Conclusions show that operators have clear opportunities to add value and position themselves strongly with the increasing number of services to be provided by 5G.Comment: 18 pages, 5 figure