SASMITA MOHANTY

MUDANÇAS ESTRATÉGICA NO SECTOR DAS TELECOMUNICAÇÕES: EUROPA VS. ÍNDIA

STRATEGIC CHANGES IN THE TELECOMMUNICATIONS SECTOR: EUROPE VS. INDIA

Universidade de Aveiro

2012 Departamento de Economia,Gestão e Engenharia

Industrial

SASMITA MOHANTY

MUDANÇAS ESTRATÉGICA NO SECTOR DAS TELECOMUNICAÇÕES: EUROPA VS. ÍNDIA

STRATEGIC CHANGES IN THE TELECOMMUNICATIONS SECTOR: EUROPE VS. INDIA

Dissertação apresentada à Universidade de Aveiro para cumprimento dos requisitos necessários à obtenção do grau de Mestre em Gestão, realizada sob a orientação científica do Doutor António Carrizo Moreira, Professor Auxiliar do Departamento de Economia,Gestão e Engenharia Industrial da Universidade de Aveiro

Universidade de Aveiro

2012 Departamento de Economia,Gestão e Engenharia

Industrial

Este trabalho é dedicado à minha família e sogros.

o júri

presidente Prof a . Doutora Maria Madalena Gomes Vilas Boas

Professora Auxiliar Convidada, Departamento de Economia,Gestão e Engenharia Industrial, Universidade de Aveiro

Prof. Doutor Daniel Ferreira Polonia Professor Auxiliar Convidado, Departamento de Economia,Gestão e Engenharia Industrial, Universidade de Aveiro

Prof. Doutor António Carrizo Moreira Professor Auxiliar, Departamento de Economia,Gestão e Engenharia Industrial,

Universidade de Aveiro

agradecimentos

Este trabalho foi feito com ajuda valiosa e sugestões de vários amigos,

colegas e professores. Um agradecimento especial a minha tese de

conselheiro António Carrizo Moreira Prof por sua orientação e valiosas

sugestões.

Agradeço também a meus familiares pelo seu amor e apoio. Especialmente,

ao meu marido que me ajudou em vários aspectos.

palavras-chave Gestão de Telecomunicações, a estratégia de estratégia, em telecomunicações, mudanças estratégicas em telecom, telecomunicações na

Europa, as mudanças estratégicas no setor de telecomunicações na Europa,

indiano de telecomunicações, as mudanças estratégicas no setor de

telecomunicações indiano.

resumo Neste trabalho, as mudanças estratégicas no setor de telecomunicações da Europa são estudados. Dez maiores empresas da Europa são selecionados

para esta análise. Suas mudanças estratégicas sobre a década 2001 - 2011

são estudadas e analisadas. Essas mudanças estratégicas do mercado

Telecom Europeia são posteriormente comparados com o seu homólogo

indiano. Estes dois mercados são, então, analisada a partir dos pontos de

vista de mudanças estratégicas. Finalmente, as semelhanças e diferenças

entre os dois mercados são analisados e comparados.

keywords Telecommunication management, strategy, strategy in telecom, strategic changes in telecom, telecom in Europe, strategic changes in telecom

sector in Europe, Indian telecom, strategic changes in Indian telecom

sector

abstract In this work, the strategic changes in the telecom sector of Europe are studied. Ten largest companies of Europe are selected for this analysis.

Their strategic changes over the 2001 – 2011 decade are studied and

analyzed. These strategic changes of European Telecom market are

subsequently compared with its Indian counterpart. These two markets

are then analyzed from the view points of strategic changes. Finally, the

similarities and differences between the two markets are analyzed and

compared.

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Contents

List of abbreviations ……………………………………………………………………………………… iv

List of figures ……………………………………………………………………………………………... vi

List of tables ………………………………………………………………………………………………. vii

Chapter Title Page

Introduction ……………………………………………………………………………. 1

Objectives ………………………………………………………………………………………… 2

Methodology ……………………………………………………………………………………... 2

Previous Works …………………………………………………………………………………... 2

1 Overview of Telecom Market (Literature Review) …………………………………. 5

1.1 A Brief History of Telecommunication Industry ………………………………………………… 5

1.2 Basic Telecom Statistics ………………………………………………………………………….. 6

1.3 Key Indicators of Europe and the Rest of the World …………………………………………….. 10

1.4 Telecommunication Market Shares ………………………………………………………………. 11

1.5 Bandwidth Demand per User in the Internet ……………………………………………………... 13

1.6 Top Broadband Economies of the World ………………………………………………………… 14

1.7 The Reasons behind the Strategic Shifts …………………………………………………………. 16

1.7.1 Market Penetration and Growth Rate …………………………………………………………….. 16

1.7.2. Mobile Cellular Market …………………………………………………………………………….. 16

1.7.3 Fixed Broadband Market …………………………………………………………………………… 17

1.7.4 Mobile Broadband Market …………………………………………………………………………. 17

1.7.5 Internet Users Market ……………………………………………………………………………….. 18

2 Factors and Indicators of Strategic Changes of Big Companies of Europe ………... 19

2.1 Analysis of Big Companies of Europe …………………………………………………………… 19

2.2 Fluctuation of Revenues ………………………………………………………………………….. 21

2.3 Technological Factors ……………………………………………………………………………. 23

2.4 Competition and Globalization Factors …………………………………………………………... 23

2.5 Market Dynamics ………………………………………………………………………………… 24

2.6 Social Factors …………………………………………………………………………………….. 24

3 Changes in Internal and External Strategies of European Telecom Companies ….. 25

3.1 External Strategic Changes in the main European companies …………………………………… 25

3.1.1 Strategic Changes due to Demographic Segment ………………………………………………. 26

3.1.2 Strategic Changes due to the Economic Segment ……………………………………………….. 26

3.1.3 Strategic Changes due to the Political Segment …………………………………………………. 26

3.1.4 Strategic Changes due to the Sociocultural Segment …………………………………………… 26

3.1.5 Strategic Changes due to the Technological Segment ………………………………………….. 27

3.2 Strategic Focus of the Companies towards Competitors …………………………………………. 27

3.2.1 Strategic Changes due to threat of new Entrant …………………………………………………. 27

3.2.2 Strategic Changes due to Bargaining power of Suppliers ……………………………………… 27

3.2.3 Strategic Changes due to Bargaining Power of Buyers ………………………………………… 28

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3.2.4 Strategic Changes due to Threat of Substitute of Products …………………………………….. 28

3.2.5 Strategic Changes due to Intensity of Rivalry among the Competitors ………………………. 28

3.3 Internal Strategic Changes in the main European companies ……………………………………. 28

3.4 Managing Changes ……………………………………………………………………………….. 30

3.4.1 Change in Focus due to Competition: Wireless companies looking towards landline ……... 30

3.4.2 Outsourcing of Services to cheaper destinations ………………………………………………… 31

4 Changes in the Business Level Strategies and Strategic Actions …………………… 33

4.1 Changes in Business Level Strategies ……………………………………………………………. 33

4.2 Competitor in one country and Alliance Partners in another country ……………………………. 3