Thursday, July 12, 2012

Swedish mobile operators

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The purpose of this thesis is to explain and analyse the co-operations that have emerged between the

Swedish mobile operators. In order to be able to fulfil this purpose, an analysis of the structural

changes within the industry for mobile operators is included. The studied co-operations are; Telia �

Tele, Europolitan � Sense and Europolitan � HemEl. The authors have found the case study to be

the most appropriate research design for ful-filling the purpose of the thesis and a deductive

approach is chosen. The collection of primary data has primarily been performed by a large number

of in-dept interviews.

A research model has been developed that will be used for ful-filling the purpose of the thesis. The

research model will also help in guiding the reader through the thesis. The research model illustrates

how the technological development and the new regulations directly affect the structural changes

(value network) within the industry. It further illustrates how the structural changes (value network)

and the motives for co-operating (identified by applying theories on Inter-Organisational Cooperations)

together explain and answer the question “Why have the co-operations between the

mobile operators emerged”.

In order to be able to analyse the structural changes within the mobile telecom industry the authors

have examined theories on industry structure and have found the theories on the value system and

the value network to be the most appropriate. By applying these theories to the results the authors

have identified three stages that describes the evolution from the traditional mobile value system to

the open mobile value system and finally the mobile value network. New regulations enable new

players, mainly in the form of virtual operators, to enter the industry, which has opened up the

previously isolated mobile value system. The main implication of this is an increased competition

within the industry and new entrants are claiming to share the revenues with the traditional mobile

network operators. The technological development, that will enable increased transmission capacity

and differentiated mobile services, will further attract new entrants, mainly in the form of content

providers. This will further threaten the network operators’ position within the value network. The

discussed changes and evolution of the mobile value system stimulate the emergence of new

relationships and co-operations within the mobile telecom industry.

After having examined different theories on Inter-Organisational Co-operations the authors have

found that most theories boil down to three main motives for co-operating; cost reductions, revenue

increases and knowledge and learning, of which the first two are most applicable to the co-operations

studied. In summary the main motives for the co-operations having been established between the

Swedish mobile operators are

• Reduce the large investment costs and investment risks in the UMTS network

• Increase future revenues

• Access additional resources to be able to compete more effectively

The authors’ opinion is that the theories on Inter-Organisational Co-operations to a great extent

explain the motives behind the co-operations studied. However, when conducting the interviews and

analysing the empirical findings the authors realised that there exist great uncertainties regarding

several areas affecting the mobile operators’ future revenues. The authors argue that these

uncertainties to a great extent reinforce the identified motives behind the co-operations between the

Swedish mobile operators and therefore need to be included in the final research model.

In summary the authors argue that the following three factors explain why the co-operations between

the Swedish mobile operators have emerged

• Changes in the value network

• Traditional theoretical motives for co-operating

• The uncertain situation facing the mobile operators, which reinforces the motives for cooperating

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