CELL PHONE OPERATORS INDUSTRY

Cell Phone Operators Industry

Cell Phone Operators Industry

Introduction

Industry analysts argue that the current scenario may inhibit the future growth of telecoms services. What's more, especially for fixed-to-mobile termination rates, a large body of theoretical research in economics has demonstrated that independently of the intensity of competition for mobile customers, mobile operators have an incentive to set charges that will extract the largest possible surplus from fixed users.

SWOT Analysis

KEY Strengths

Market Power

The four main players in Europe - Deutsche Telekom, Vodafone, Telefonica and France Telecom, as well as their strategic partners are using their colossal, cross-border market power to force their suppliers to cut prices. 

Key Weaknesses

There are concerns and people are even frightened that the radio waves coming out of their mobile phones are short enough to literally 'cook' their brains.

There is no scientific proof that base stations for mobile phones (power level of 20 Watts) have any damaging effects on living beings, even short exposures to high-power microwaves (like inside microwave ovens, in proximity of radar dishes, military airplanes and military electronic countermeasure systems, which all have power levels of about 500 Watts to 1 Giga Watt). These cause all tissues to heat up, which leads to the destruction of internal organs, and the whitening of the eye's lens.

Key Opportunities

New Business Opportunities

Ericsson has created a separate Bluetooth business, Mads Madsen a spokes person for Ericsson in Sweden said that the new company for which a name has not yet been decided has already begun operations.  The company is based in Lund, Sweden.  This is where Ericsson has it major Bluetooth research department.  "The new company is an expansion of our existing business," Madsen said. "We expect it to be a profitable business."

Wireless Networking

Bluetooth the much-heralded wireless networking standard is seen as the solution to cutting the cables whilst increasing the connections of devices both at home and at work.

Market Opportunity

Generally speaking, 3G services are perceived as a market opportunity of parallel proportions to the Internet itself. This is fundamentally due to the fact that mobile phones, unlike PCs, are easy to use and are just that; mobile. Therefore, Mobiles tend to become part of the everyday lives of those who use them even if the user is not interested in technology.

Key Threats

Making Money

Wireless providers have paid billions for 3G licences, although they have also invested in a dilemma: how are they to make their money back?

As Wireless providers strain and come to terms with the huge burden of dept looming over their heads as a result of inflated prices on many paid for licenses, critics have said that “3G will do more to stifle the development of mobile services than it will to revolutionize it” 

PEST Analysis

Political

The tale encompassing the sales of radio spectrum, especially for the next generation of mobile phones has been one of unpredictable results including widely varying fortunes.

In 2000, the UK Government began to accept bids from 13 companies who wanted to operate a license to sell next-generation mobile phones. Undeniably, this raised the hopes of other Governments, diminishing their doubts and making it more believable that they ...