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End of integration as low-cost operators capture customers
01 August 2004
Jamie Anderson considers the end of integration as low-cost operators lure customers from the incumbents
The current strategies of many mobile companies are misguided. Most incumbents continue to target virtually all customer segments, and are continuing to pursue a single brand, integrated business model, despite the fact that the conditions that required integration for competitive advantage have shifted.
There are already examples of fragmentation as new entrants are figuring out where to target their efforts to maximise profitability, and this process is likely to continue. The question is whether incumbent operators will adapt to this changing competitive environment and align with customer differentiators, or continue to cling to increasingly outdated organisational designs.
In the early days of the mobile industry, technologies, business processes and channels to market were not yet established. While suppliers such as Ericsson were developing the infrastructure to support the infant industry they did not typically extend their roles into network management. Network operators employed dedicated armies of engineers to build and...
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