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The Mobile Telecommunications Industry Essay

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The mobile telecommunications industry in Ireland has always been a competitive and rapidly changing industry. It has changed considerably from it’s initial birth with only one competitor, to it’s liberalisation in 1998, all the way through to the introduction of MVNO’s in the 2000’s. Mobile penetration has increased from 42 % in 2000 (Telecommunications and Internet Federation, 2005) to almost 97% of Irish adults owning a mobile phone now in 2013. (Irishexaminer.com, 2013) In order to fully understand the rapid development of this industry and the future of it, we must first look at its history in 1998.
The Telecommunications Industry in Ireland in 1998 was a duopoly, meaning that there were only two service providers in the market. These were Eircell, which is better known today as Vodafone, and Esat Digifone, known today as O2. The industry therefore was small and had very limited competition. The industry was only in it’s initial early stages.
Michael Porter created the five Forces Framework in order to analyse industry competitiveness and attractiveness.(Porter,1997, pp.137-145) The varying degrees of strength or weakness of these five forces determine whether an industry can make high returns, thus determining whether it is an attractive industry or not. The more powerful each of these five forces is, the less profitable an industry will be. These five forces, the threat of new entry, power of buyers, power of suppliers, the threat of substitution and the intensity of rivalry should be examined in relation to the telecommunications industry in 1998 in order to assess its attractiveness.
The first force is the threat of new entry. In the telecommunications industry before December 1998, the threat of new entry was very lo...


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Ibec.ie. 2011. Telecoms industry discuss future mobile trends | Ibec - Newsroom. [online] Available at: http://www.ibec.ie/ibec/press/presspublicationsdoclib3.nsf/wvSectorNews/63D99994F6B244E9802578B90053DDA5 [Accessed: 31st Nov 2013].

heanet.ie. 2013. The next decade in Mobile Communications – An Irish Operators perspective. [online] Available at: http://www.heanet.ie/conferences/2011/files/46/Pat%20Moynihan%20-%20O2.pdf [Accessed: 29th Nov 2013]

Irish Times. 2013. Three Ireland suffers outage as O2 sale agreed. [online] Available at: http://www.irishtimes.com/business/three-ireland-suffers-outage-as-o2-sale-agreed-1.1440839 [Accessed: 31st Nov 2013].




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