3G Wireless Market Attractiveness: Dynamic Challenges for Competitive Advantages

Abstract

Nearly every incumbent operator in the wireless market has experienced business problems in recent years. The reason for this is the opening of the market for competitive operators and the following drop in prices as well as attractive services in the mobile telephony market. This chapter describes changes in competitive advantages deriving from the development of Third Generation services. The remainder of this chapter is organized into the following three sections. The first section provides the theoretical framework of competitive analysis. Next the chapter focuses on value chain strategy framework giving an analysis of wireless market attractiveness and changes in competitive advantages. Finally the chapter analyzes competitive dynamics and describes five competitive strategies that differ in their aggressiveness in launching new services and deploying new technology.