Mobile operators in 2010: The smartphone challenge (B)
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ESMT Case Study Series
Subject(s): Strategy & General Management Keyword(s): technological innovation, core capabilities, technology portfolio, value network
The case study describes the situation of mobile telephone network operators (MNOs) in 2010 facing a fast increase in the traffic over their third generation (3G) networks (UMTS) following the growing adoption of so-called “smart phones”. Smart phones had capabilities similar to a laptop computer in addition to the normal functions of a cellular telephone: they allowed user to access the internet virtually anywhere the 3G networks were deployed. Subscribers could thus download music, videos, application software (apps), and upload large files. There were growing concerns among MNOs that some content distributors, and especially Apple with its iTunes and App Store was capturing a large share of the customer value, while not carrying the huge cost of the network. Was there any way for them to regain a share of the content distribution?

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