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 surrounded by manufacturing and services. These include the following:

* Ability to develop and protect copyrighted technologies: Imitation is simpler for a phone operator; manufacturing process/ constitution patents are more than 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 constitute distinction is the nature of research and development. Manufacturing firms conduct a large share in house, and the output of that internal activity is more analogously to be a proprietary technology. For phone operators, piddling research occurs in house, and the development activity that occurs is primarily related to to enhancing, redesigning, or reconfiguring others proprietary technologies. Whereas manufacturing firms license/purchase others technologies in the play of intellectual capital or equipment to be used to arouse proprietary technology, phone operators would purchase others technology in the human body of equipment to be modified and integrated into their operational system to lay aside modifications to existing products.



In addition, manufacturing firms strategically, through their research, introduce new technologically advanced products and processes to anticipate new consumer wants; whereas phone operators strategically, through culture gathering, modify existing products to meet existing consumer needs.

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

UMTS is bound to be a huge success since it is the last convergence of fixed and mobile, voice and data, content and delivery. Some of the umpteen usable-on-the-move applications that can be implemented by UMTS are:

* pass services like multimedia messaging

* Content specific applications like news, music, and other entertainment services.

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