In wireless, the right technology is the key to success

Posted on April 29th, 2008 in Knowledge

In current wireless telecommunication competition, the right technology is the key to success. That’s why every telecom company has a huge and modern business planning & development department that supported by number of high paid consultant from Booz Allen Hammilton, Mc Kinsey and another top consulting firm.

According to report released by the MIT Sloan School of Management this concept is supported by the fact that the Telecommunication industry is in Oligopoly market which small number of players in the market, facing no risk of entry.

The report also stated that telecommunications market fits several criteria for oligopoly which also supported by

High barriers to entry (huge sunk and unrecoverable costs)
Regulation
Commodity undifferentiated products

My question, how effective the right technology will be a key enabler for successful business operation? For example, currently there are three new telecommunication operator in Indonesia that choose different technology for their operation. They are, Axis (Natrindo Telepon Seluler -owned by Saudi Telecom) choose GSM technology, Three (Hutchison Telecom) choose GSM technology, and Smart (Sinar Mas Telecom) choose CDMA technology, Sampoerna Telecom, and also the second tier operator such as Esia (Bakrie Telecom), Fren (Mobile 8 ) using CDMA for their platform.

So, what do you think?

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