Assessing the UK experience functional separation in fixed telecommunications markets

This paper focuses on functional separation. After reviewing the literature on separation in its various guises and describing the circumstances that culminated in the creation of Openreach in the UK, the paper focuses on the implementation of the undertakings. It is shown that difficulties have been encountered in the implementation of the undertakings, and that while the relationship between BT and other service providers may have improved, tensions remain

Recent mobile telecommunications alliance formation

During the year to end-January 2005, the resurgence of takeover activity in the mobile telecommunications industry 1 has attracted media attention. However, by focusing on takeovers, the willingness of companies in the sector to collaborate through alliance and joint venture formation is in danger of being overlooked. These alliances, none of which are more than two years old, can be variously interpreted. They could signify a return to expansionary behaviour by operators motivated by the desire to capture lucrative roaming traffic or retain key customers. Alternatively the alliances may be motivated by the desire to compete more effectively with Vodafone, which is arguably the only mobile operator with a global footprint. This paper is structured as follows. In the initial section, the six alliances that have been formed are described. Particular attention is paid to the membership and resulting scale of these alliances, as well as to the motives for their formation. The first sub-section focuses on those alliances that are largely scale orientated in motivation, while the second concentrates on those that are more technologically orientated. These alliances are then discussed in detail and conclusions are drawn

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.Openreach, functional separation, UK.

Third time lucky? An exploration of Hutchison Whampoa's involvement in the mobile telecommunications industry

Each year the United Nations Conference on Trade and Development produces a report on foreign direct investment (FDI). This report highlights trends on FDI, and identifies the world's largest transnational corporation (TNC). Prominent among the largest TNS are telecommunication companies such as Vodafone and Telefónica. Less obvious due to its diversified description is Hutchison Whampoa, a large conglomerate with a long history of an active presence in the telecommunications industry. This paper charts the history of this involvement before focusing on whether its recent investment in third-generation (3G) licences will be as successful as previous its ones. Through analysing the 3G investments that it has made, this paper argues that Hutchison Whampoa is unlikely to enjoy the same success with these 3G investments as it has in the past with Orange and its Indian operations. --Hutchison Whampoa,3 Group,operational performance,telecommunications

Is re-farming the answer to the spectrum shortage conundrum?

Radio spectrum has become one of the engines of economic growth. However, rapid technological change, ever increasing demands for new wireless services and the nature of spectrum as a scarce resource necessitate an urgent re-examination of issues such as congestion and interference. This paper argues that the traditional administrative spectrum management approach is unlikely to overcome these issues, thereby resulting in growing technical and economic inefficiencies. As countries review their spectrum policies - a process that is generically referred to as radio spectrum policy reform - to counter these inefficiencies, modifications to the radio frequency allocations and assignments are beginning to be implemented by way of radio spectrum re-farming? This phenomenon forms the subject matter of this paper

From phones to football: The changing strategic focus of BT

For over a decade BT has been investing significant sums to shift its focus away from the provision of voice telephony towards the Internet. This shift is epitomised by the widespread availability of broadband and the company’s purchase of the rights to broadcast English Premier League football games. This paper argues that its dominance in the voice telephony market funded its initial expansion into these new markets, and that broadband and sports content are mutually supportive lines of business. The paper also highlights the significant contribution that Openreach makes to the overall profitability of BT, and the challenges that exist as a result

High-speed data provision via mobile networks in Latin America and the Caribbean

Purpose: The purpose of this paper is to examine in a fully up-to-date manner the position in respect of the licensing and launch of Long-term Evolution (4G) in a region that attracts relatively little attention in academic work and the media. Also to examine the role of incumbency and to assess to what extent the licensing of LTE can make a difference to the structure of mobile markets in the region. Design/methodology/approach: The first step has been to compile extensive databases with respect to the licensing and launch of high-speed networks in the region, arranged so as to emphasise the position of the dominant incumbents. A distinction is drawn between the larger, mainly Latin American, countries and the smaller, mainly Caribbean, islands. There is a discussion of new entry and its potential to disrupt incumbents. Findings: The position of dominance held by two operators, America Movil and Telefonica, in the larger countries, and by Digicel and CWC (Liberty Global) in the islands is brought to the fore and the analysis demonstrates that this is unlikely to be more than marginally affected by regulatory attempts to restructure markets by, for example, fostering new entry. Research limitations/implications: This is necessarily an overview paper as more than 50 countries/islands are covered, so detailed individual country studies are precluded. Practical implications: The way forward, such as it is, can only be illuminated by first clarifying the current state of play. Social implications: Originality/value: The databases that underpin the analysis are author-compiled and entirely original

The evolution of US mobile operators within a multi-play world

Purpose The purpose of this study is to analyse the ways in which mobile operators in the USA that previously presented themselves as providers of essentially a single service have had to adapt to the requirements of a multi-play world that includes mobile and fixed-wire voice, broadband internet and Pay-TV. Design/methodology/approach The approach is empirical in its entirety and based upon a historical review of the actions of (primarily) the nationwide mobile operators in the USA. Account is taken of the actions of companies in what were historically separate spheres of business such as cable and satellite. Findings It can be seen that there has been a great deal of restructuring activity in the US mobile sector during the past decade driven by a number of factors such as the need to achieve scale and to provide high-date-rate transmission. However, in very recent times, the main driving force has been the need to gear up for the provision of multi-play services. Research limitations/implications The next few years will see an acceleration of restructuring activity as previously independent companies link up voluntarily or via takeovers. Social implications It can be argued that it is the evolving use of smartphones, especially among those aged under 30, that is a key reason why mobile operators are having to change their business models, rather than the reverse. Originality/value Regulators, in particular, appear to be stuck in a world in which different segments of the world of telecommunications continue to plough independent furrows. However, multi-play is the future of the sector and there has not so far been much attention paid to this phenomenon

High-speed data in Africa: An assessment of provision via mobile networks

Purpose: The purpose is to examine the current provision of high-speed data networks on the African continent, in particular taking into account both licences and launches related to long-tern evolution (LTE). Design/methodology/approach: An up-to-date underlying database of licences and launches relating to LTE in Africa has been compiled. There is also a review of the international operators that are playing a significant role in LTE provision. A number of individual country case studies are considered. Issues of corruption are addressed. Findings: Africa is interesting because it has been a laggard in the development of high-speed data networks, but now finds itself in a position to leapfrog 3G technologies and hence close the gap that had opened up compared to, for example, Europe and Asia. This process is effectively assisted by the lack of fixed-wire connectivity but has to take account of the difficulty of attracting the requisite investment. Research limitations/implications: Databases relating to Africa are always difficult to compile. Originality/value: Published work relating to mobile networks in Africa is not plentiful and it is difficult to find relevant data in the public domain. A key aspect of the paper is that the database is entirely up-to-date