The challenge of smooth transition from R&D business for innovation in a telecom company

The environment surrounding telecom companies has changed dramatically since most were privatized in the 1980s. Under the influence of regulations, they had faced globalization and have repeatedly divided and consolidated to improve competitiveness. From the technology and marketing points of view, two disruptive innovations occurred in the 1990s: IP and wireless communications. Originally, IP was used only for data communications, but it has now evolved to include voice communications as VolP. This had a huge impact on telecom companies because IP has destroyed the legacy cost structure that was based on a pay-as-you-go system; the new demand is for a flat rate fee structure. IP also moved forward the commoditization of communication network services. At the same time, demand for cellphone service grew exponentially, and the number of cellphone subscribers surpassed that of fixed phone in 2000 in Japan. As a result, competitive superiority is shifting from long- distance companies to local and wireless companies. In this thesis, I discuss the telecom industry's situation, and compare three major carriers: AT&T, BT and NTT.

Department dc:contributor.department

Sloan School of Management

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2005

Author dc:creator

• Tsuji, Yukari, M.B.A. Sloan School of Management

Advisor dc:contributor.advisor

• Henry B. Weil.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/33597

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/33597