Introduction of UMTS in Spain Case Study Competition in the European Mobile Phone Industry.

Essay by kanpaiUniversity, Master'sA-, November 2006

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What are the unique characteristics of the phone operator compared to traditional manufacturing sectors?

Development of phone services needs a complex cooperation between different parties; users, subcontractors, operators and providers. Those are all affected by the general financial and technological development. And that applies even more for UMTS than for 2nd generation GSM, regarding that 3G has more complicated technology and handsets and need much more content providers and so on. Phone operators must have agreements with each other. Many manufacturing sectors do not need to have agreements with each other in order to succeed. The phone operator industry has to reply on many other industries (such as handset manufacturers, technology providers etc.) whereas typical manufacturing companies may not have to rely on other industries to succeed.

The phone operators it's a much regulated industry where the regulator could force to the leaders to rent their own net to a new entrance operators in order to force competitive market.

They are very high-tech industry without any patent system to protect their investment like a pharmaceutical industry. The government could change their laws without any compensation to the attendees. As a result it depends too much from the government decisions makers.

The phone operator like internet operator is a mass market industry due they need a huge investment due their high fix cost they need to achieve a quite big number of consumers. Due they are compositeness market the prices to the consumers are going down.

Will the introduction of UMTS be successful? Which factors will affect the success or failure of UMTS?

The introduction of UTMS may not be successful. As the Wharton professor pointed out, people do not need high speed internet while they are on the go. At home and office, people have their own internet connections and...