Strategic action in network industries: an empirical analysis of the European mobile, страница 10

Table 1

Categorization of strategic actions relative to the primary activity categories

1. Competitive actions Infrastructure operations

Investment in fixed assets

November 1996

Cellnet (UK) announces that it will invest d1 billion to install 1700 GSM base stations over the next five years

Buy spectrum

October 1996

One-2-One (UK) buys new spectrum to reduce the congestion in its network in London city

Bid for license or spectrum

February 1997

Europolitan (Sweden) is among the bidders for the new DCS 1800 licence up for grabs in Sweden

Extend coverage

Network promotion

June 1997

France Telecom has expanded its GSM network into rural France with the addition of 1300 base stations

Price cut

February 1997

Cellnet (UK) has reduced tariffs by 20% on its GSM network to encourage existing analogue subscribers to migrate to digital service

New schemes or promotional add-ons

March 1997

Deutsche Telekom offers new VIP service for customers with monthly bills over DM 500

Markeing campaign

December 1996

Cellnet (UK) will spend d12–d15 million in a big ad campaign pushing the operator’s international roaming capability and its depth of coverage in the UK

Sign up large customers

March 1997

Europolitan (Sweden) has signed a lucrative contract from STATTEL, the government agency responsible for purchase of telecom services in Sweden

Free airtime

April 1997

ESAT Digifone (Ireland) offered free calls worth d40 to new customers who signed up for its services

Refund for dropped calls

December 1996

Telenor (Norway) offers to refund charges for dropped calls in its GSM network to stress the reliability of its network over that of the competitor Netcom

Improve retail coverage

November 1997

E-Plus (Germany) launches a network of ‘‘Eshops’’ selling E-Plus services

Contract management

Service Provisioning

November 1996

Vodafone (UK) acquires People’s Phone, its larger subscription agent in a d77 million deal

(a non-network firm)

New technical features

November 1997

Telia (Sweden) is experimenting with

Motorola phones allowing switching between GSM 900 and DCS 1800 systems to extend the roaming capacity of its network

New services

March 1997

KPN (Netherlands) offers Internet access to its GSM subscribers from its network

Drop services

October 1996

Comviq (Sweden) closes its paging service ‘‘Metagram’’ as a part of rationalising its services

Table 1 (continued)