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Mobile telephony - cooperation and value-added are key to further success

Author

Listed:
  • Stefan Heng

    (Deutsche Bank)

Abstract

The current problems in mobile telephony are leading critics to make overly pessimistic predictions that 3G – the third-generation mobile phone system – will never become profitable. However, the resulting calls not to introduce 3G and instead directly back alternative wireless technologies (e.g. WLAN) are a step too far. Ultimately, a profit- oriented service can only create significant value-added with a mix of both 3G and WLAN technologies. It is notable that no attractive broadband-dependent applications have emerged as yet. The typical user is only interested in the value-added the application provides, not the underlying wireless technology. Although mobile telephony remains one of the most dynamic areas of the economy, euphoria is misplaced. Advanced wireless technologies will on no account become profitable before the start of the next decade. But even that is not a given; this will challenge the entrepreneurial spirit of network operators, mobile terminal manufacturers and service providers alike.

Suggested Citation

  • Stefan Heng, 2004. "Mobile telephony - cooperation and value-added are key to further success," Development and Comp Systems 0407012, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0407012
    Note: Type of Document - pdf; pages: 10
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0407/0407012.pdf
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    More about this item

    Keywords

    ICT; IT; mobile; telephony; UMTS; WLAN;
    All these keywords.

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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