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MOBILE PHONE INDUSTRY IN UK

MOBILE PHONE INDUSTRY IN UK. INTRODUCTION. Began in mid 1980s 25 million subscibers 50% market penetration (Oftel) Economic benefits Increased quality of life?. PEST ANALYSIS POLITICAL. Mobile phone transmitter stations Government intervention to ensure competition 3G license selloff.

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MOBILE PHONE INDUSTRY IN UK

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  1. MOBILE PHONE INDUSTRY IN UK

  2. INTRODUCTION • Began in mid 1980s • 25 million subscibers • 50% market penetration (Oftel) • Economic benefits • Increased quality of life?

  3. PEST ANALYSISPOLITICAL • Mobile phone transmitter stations • Government intervention to ensure competition • 3G license selloff

  4. ECONOMIC • Commitment to 3G • Subsidised handsets on expected revenues • Pay As You Go has lost money on some users • Contract customers are 3 times more lucrative (FT source(!)) • Cost of building network infrastructure, maintenance and upgrading to 3G • Income from callers dialling mobiles from landlines

  5. SOCIAL • Estimated 2/3 of UK households run active mobile phones (Oftel) • Creates many jobs in UK • Text messages • Social prerequisite • Fashion accessory • Cancer scares

  6. TECHNOLOGY • Implications of WAP • Phones get smaller with more features • High bandwidth with potential for video

  7. 5 FORCES ANALYSISThreat of new entrants • Low because of infrastructure costs and broadcast license costs • Large number of resellers but they are small and weak

  8. Buyers • Small buyers give networks power • Government watchdog keeps prices reasonable • Competition between networks • Tariffs not easily comparable

  9. Sellers • Handsets • Network equipment

  10. Substitutes • No close substitutes • Pagers – not as effective • Internet text messaging – Genie.co.uk

  11. Competitive rivalry • Hyper competitive market • Mature market • Regulation is essential • 3G phones could create new sub-market

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