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 …

…foray into 3G services, Xfera has to invest in developing in-house capabilities or partner with content providers to develop innovative products and services (applications) that will stimulate churn. * Their basic strategy should be geared towards forming alliances with market leaders and technology providers to strengthen their position as newcomer in the Spanish market. * Building a recognized brand name with the aim to sell it in the near future could also represent an option for them.