Competition In The European Mobile Phone Industry
Competition in the European mobile phone industry: Introduction of UMTS in Spain
Unique characteristics of the phone operator compared to traditional manufacturing sectors
Many of the fundamental characteristics differ between manufacturing and services. These include the following:
· Ability to develop and protect proprietary technologies: Imitation is simpler for a phone operator; manufacturing process/system patents are more difficult to obtain and protect.
· Incremental nature of innovation versus discrete technology transition: Because of competitive pressures and the relatively low cost of modifying service provision (compared to changes to manufacturing processes), services offered by phone operators can continually evolve.
· Technology Development. A key distinction is the nature of research and development. Manufacturing firms conduct a larger share in house, and the output of that internal activity is more likely to be a proprietary technology. For phone......
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