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and UK licensing process, where widely optimistic claims about the array of possible services and uptake were made, has been replaced by widespread anxiety and pessimism.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

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

Broadband in rural and remote areas: the impact of Scottish policy initiatives

The ability to participate in the Internet-based economy that is emerging requires access to broadband. However, in many countries, 'digital divides' occur, with those in geographically remote and rural areas being particularly disadvantaged. Through focusing on rural and remote Scotland, the paper identifies three different categories of policy initiatives that have been adopted and their interaction with broader UK and industry wide developments. Whilst these initiatives have encouraged the adoption of broadband, it is argued that UK initiatives are creating a new series of challenges to the adoption of broadband

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

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 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.

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

The interplay between market factors and regulation in next-generation broadband: evidence from Europe

Although many factors affect next-generation access (NGA) deployment, regulatory frameworks have the power to guide future investments, further development and, consequently, the competitiveness of a next-generation broadband market. Understanding the link between markets and regulatory requirements, therefore, is essential. Using data collected from broadband stakeholders in three markets, this paper provides an empirical analysis of this relationship. The market conditions in The Netherlands, Sweden and the United Kingdom (UK) and their roles in influencing the regulatory decisions made by the respective national regulatory authorities (NRAs) are examined. Such analysis first shows that market conditions present different priorities for regulators and policymakers. While markets with weaker incentives for investment, such as the UK, are in need of regulatory and public policy intervention, The Netherlands and Sweden require less stringent measures. Despite this, evidence shows that some level of NGA regulation is presently required in all three markets, albeit to varying degrees and with different foci. The paper then highlights the interaction of the market factors, explaining that this interrelationship is more important for policymakers than the effects of a single factor. The findings of the paper are useful for regulators in addressing the challenges of next-generation broadband deployment. --Next-generation access,Regulation,The Netherlands,Sweden,United Kingdom,Comparison

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