Is functional separation BT-style the answer?

This paper focuses on functional separation. After recounting the circumstances that culminated in the imposition of functional separation within the UK, the paper highlights the difficulties that have been encountered subsequent to the creation of Openreach. Functional separation developments outside the UK are then described and doubts raised as to whether the Openreach model is appropriate for other markets

Measuring internationalisation in the mobile telecommunications industry

The telecommunications industry is often described as being a global industry. However, the fact that it exists throughout the globe does not necessarily imply that its constituent companies are individually global in their operations. So far, little interest has been expressed in determining whether they are or are not in practice, but to do so requires that one first determine how this is to be measured. This article focuses on the measurement of internationalisation within the mobile telecommunications industry where the phenomenon can be most clearly identified. Drawing on the literature, four dimensions of internationalisation are initially identified and a database is constructed for the year ending 31 December 2005 that provides hard evidence in relation to these dimensions. Analysis of the results reveals that just a handful of the companies in the sample can be considered to be meaningfully international when all four criteria are taken into account, and that Vodafone among them is best placed to describe itself as a global mobile operator although there are too many reservations for the term global to be seen as an appropriate label. The results highlight the complexity of internationalisation, with operators tending to do well on some of the criteria but not on others, and the paper illustrates how data availability influences the choice of criteria. Data availability also necessitates a trade-off between sample comprehensiveness and detail

An investigation into internationalisation among mobile telecommunication companies in 2003

Aims to assess the extent to which the owners of mobile telecommunication companies could be said to be internationalised at the end of 2003, and to make comparisons among them. A comparison is made of the internationalisation status of the 39 telcos at the end of 2003, broken down by region

The prospects for third generation new entrants in the European mobile telecommunications industry

This paper focuses on new entrants within the European mobile telecommunications industry. More particularly, the paper identifies those new entrants that emerged from the third-generation (3G) licensing process across Europe before examining how they have fared. Four operators seeking to become new entrants across a range of countries are identified, although only one of them-Hutchison Whampoa trading as '3'-is considered to be fully active as a 3G new entrant. It is argued that the success of Hutchison Whampoa to date has been patchy, and that a supportive parent company has significantly contributed to its ability to remain active

Assessing the UK experience of functional separation in fixed telecommunication markets

Over the course of the last year or so there has been considerable interest in implementing functional separation within fixed telecommunications markets. In these markets, which are largely but not exclusively to be found within the European Union, functional separation is seen as a way to resolve the tensions that exist between incumbent operators and other service providers that require access to their networks to deliver their own services. Within the European Union, Commissioner Reding, among others, has spoken favourably about the UK experience of implementing functional separation. The favourable comments that have been made raise two related questions that this paper will address. The first question is concerned with the precise nature of the UK experience of functional separation. In late 2005, Ofcom and BT agreed that a new division - Openreach - would be established to run BT's local access network. As part of this agreement, Ofcom agreed to accept an extensive range of undertakings from BT that would govern how Openreach operated in practice and the products that it offered to other service providers. In addition, performance indicators and deadlines were placed on BT and penalties for their non-achievement were outlined. These measures to improve the relationship between BT and other service providers were widely welcomed when announced. Since late 2005, however, some commentators have questioned the manner in which the undertakings are being implemented. The cumulative and long-term effect of the temporary exemptions that BT has been granted by Ofcom are unknown, with some arguing that these have delayed the implementation process to the advantage of the incumbent. Other commentators have questioned the exact nature of the relationship between BT and Openreach, wondering among other things how subsequent investment in the local network will be funded. It has also been questioned what will happen if BT fails to implement the undertakings, not least because there are uncertainties associated with both imposing a financial penalty or referring BT to the Competition Commission. Given the importance of Openreach and the uncertainties surrounding the implementation of the undertakings, this paper will assess the progress that has been made to date and explore the implications of the exemptions that have been granted. The paper will draw on the extensive published correspondence between BT, Ofcom and other operators regarding the undertakings as well as consultations and other documents. The second question that will be addressed in this paper relates to the lessons can be learnt from the UK experience for countries considering the adoption of functional separation. The pioneering nature of functional separation within the UK has inevitably led to it being frequently referred to by others considering its adoption. However, in this process the unique circumstances that led to the creation of Openreach are often overlooked. Consequently, this paper will take into account these unique circumstances when identifying the appropriate lessons that can be drawn for other countries

United Kingdom: Laissez-faire as the most successful course of industrial policy?

This paper discusses the industrial policy of the United Kingdom. It was presented at the Industriepolitik in der Telekommunikation: Deutschland im europäischen Vergleich in 2008

The strategic implications of European Union expansion for mobile telecommunications companies

The European Union (EU) has recently been significantly enlarged with the addition of ten countries. This was expected to induce telecommunications operators in the original EU15 to invest heavily in operators in the accession countries. This paper seeks to analyse the extent to which this has occurred in practice. The results show that there has been no uniform response by operators in the EU15 to the onset of accession, and rather less investment overall than had been anticipated. This is explained by a variety of factors such as lack of investments providing majority control, financial constraints and the desire to cluster investments

The Internationalisation of Mobile Telecommunications: Strategic Challenges in a Global Market

Peter Curwen and Jason Whalley review the strategic operations of, and technological options available to, the 30 most prominent international mobile operators. This review is initially based upon the Asia-Pacific, African, European, Latin American and North American regions before moving on to take a worldwide perspective. The authors place these mobile operators within a wider business context via a broad ten year appraisal of the companies involved in the entire telecommunications, media & technology (TMT) sector. The issue as to whether there truly is such a thing as a global mobile operator is addressed; the answer, in practice, is negative.Based upon the very latest data available, the underlying premise of the book is that mobile telecommunications is such a fast-moving sector that operators are obliged to alter their international strategies as circumstances unravel without necessarily having a long-term master plan, and hence that opportunism is a hallmark of operators' international strategies. This state-of-the-art overview of the internationalisation of mobile telecommunications will prove essential reading for academics and practitioners with a vested interest in technology, telecommunications and strategic management

Mobile television: technological and regulatory issues

The purpose of this paper is to analyse technological and regulatory issues arising from the introduction of TV services on mobile handsets. The paper looks at the various technological solutions to the provision of mobile TV and records the progress to date of trials of these technologies. It also examines the regulatory framework in the EU and certain individual countries and analyses the effects of spectrum shortages. The paper finds that the existence of competing, incompatible technologies, the constraints on the availability of suitable spectrum, the issue of what content to broadcast and the difficulties of persuading customers to pay for it are holding back the widespread dissemination of mobile TV, but only on a temporary basis. This paper is the first detailed attempt to investigate this topic

Equality of access and local loop unbundling in the UK broadband telecommunications market

The relationship between an incumbent telecommunications operator and those companies that access its network is often fraught. This is particularly true in respect of local loop unbundling (LLU), a key product in the broadband telecommunications market. OFCOM, the UK's telecommunications regulator, recently conducted a major review of the industry that resulted in a new approach to tackling this relationship. This paper focuses on this new approach, which combined a new regulatory concept - equality of access - with the establishment of a mini-regulator focusing on local loop unbundling processes, and goes on to assess the extent to which the relationship has been improved