Online from: 1988
|Title:||Unbundling the mobile value chain|
|Author(s):||Anderson J, Williams B|
|Journal:||Business Strategy Review, Autumn 2004, Volume: 15 Issue: 3 pp.51-57 (7 pages)|
|Keywords:||Competitive Advantage, Industry Competitiveness, Mobile Communication Systems, Value Chain|
|Article type:||Research paper|
|Reference:||34AD128 (Permanent URL)|
Design/methodology/approach - outlines the development of the mobile telecommunications industry and provides a schematic illustrating the early (2G or second generation) MNO value chain. Presents a breakdown of cost structures for a typical integrated MNO. Points out the importance of emerging technological standards in maturing formats for network infrastructure and for billing enablement.
Findings - shows how the MNO value chain has developed under 2G and 3G and shows how Hutchison Australia have made use of outsourcing in their value chain. Discusses the emergence of recent industry entrants, known as Mobile Virtual Network Operators (MVNOs), which do not own network infrastructures. Describes the growth of Danish MVNO Telmore, an internet-enabled company with a low-cost model. Considers the opportunity for incumbent mobile operating companies with extensive network infrastructure to act as a wholesale supplier to this type of new entrant rather than competing directly for price-sensitive retail consumers.
Research limitations/implications - supports and extends theories of industry value chain evolution and profit migration.