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Competition In The European Mobile Phone Industry: Introduction Of Umts In Spain

1016 words - 4 pages

Unique characteristics of the phone operator compared to traditional manufacturing sectorsMany of the fundamental characteristics differ between manufacturing and services. These include the following:* Ability to develop and protect proprietary technologies: Imitation is simpler for a phone operator; manufacturing process/system patents are more difficult to obtain and protect.* Incremental nature of innovation versus discrete technology transition: Because of competitive pressures and the relatively low cost of modifying service provision (compared to changes to manufacturing processes), services offered by phone operators can continually evolve.* Technology Development. A key distinction is the nature of research and development. Manufacturing firms conduct a larger share in house, and the output of that internal activity is more likely to be a proprietary technology. For phone operators, little research occurs in house, and the development activity that occurs is primarily related to enhancing, redesigning, or reconfiguring others' proprietary technologies. Whereas manufacturing firms license/purchase others' technologies in the form of intellectual capital or equipment to be used to produce proprietary technology, phone operators would purchase others' technology in the form of equipment to be modified and integrated into their operational system to deliver modifications to existing products. In addition, manufacturing firms strategically, through their research, introduce new technologically advanced products and processes to anticipate new consumer wants; whereas phone operators strategically, through information gathering, modify existing products to meet existing consumer needs.Will the introduction of UMTS be successful? Which factors will affect the success or failure of UMTS?UMTS is bound to be a huge success since it is the ultimate convergence of fixed and mobile, voice and data, content and delivery. Some of the many "usable-on-the-move" applications that can be implemented by UMTS are:* Messaging services like multimedia messaging* Content specific applications like news, music, and other entertainment services.* Personalized services like ring tones, interactive games, virtual communities* Mobile Banking, Mobile Commerce - buying digital content* Business services requiring secure connectivity* Access to the Internet and intranets* Access to collaborative applications like managing list of contacts, meeting arrangers etc.* Synchronization with PC (address book, agenda, e-mails, etc)Key success factors for UMTS from various standpoints are listed below.Technology:* Network Performance - Capacity Planning & Management, Encryption and security* Interoperability/roaming - Maintain constant service levels between different service providers.* Backward Compatibility - towards older commercially deployed systems.* Broad band Technology- Voice and Data (e.g. TV)Business:* Marketing Strategy - Need and Service oriented, transparent...

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