STRATEGIC CORPORATE DEVELOPMENTS
2010
China Unicom and Ericsson Signed Telecom Management Contract (China)
China Unicom’s Anhui division, a major telecom company in the country, signed a telecom management contract with Ericsson for a period of 3-years. The contract would facilitate Ericsson to be the biggest telecom operating partner in the Province of Anhui. Under the terms of the contract, Ericsson would be accountable for transmission network, field maintenance of base station as well as fixed line network. China holds the biggest internet and telecom market in the world as well as superb telecom infrastructure facilities.
PRODUCT LAUNCHES
2011
PLDT and Globe Telecom Unveil 4G Technology (Philippines)
Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc. (Globe Telecom) both unveiled the 4G technology. PLDT would roll out Long Term Evolution (LTE) that is a high-speed atmosphere interface for mobile technology in Boracay. Globe Telecom also pronounced the launch of 4G mobile record in Metro Manila which would provide subscribers high-performance mobile broadband connection. The launch with an initial proviso regulating a customary Evolved High-speed Packet Access or HSPA+, would match Globe Telecom’s existent 4G Worldwide Interoperability for Wimax network or Microwave Access. Globe instigated the 4G mobile technology in Makati, Las Piñas, Marikina, Quezon City, Taguig, Pasay, and Manila. Globe anticipates boosting 4G participation by the end of a year with continued enlargement designed into 2012. The company would facilitate the consumers with 4G inclination as well as multimedia services.
Wimax, HSPA+ and LTE are the 3 technologies that would match the mandatory speed set by International Telecommu...
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...on registry). All these products handle the operators' voice and multimedia services and use the same hardware platform that is based on the commercial off-the shelf ATCA architecture.
Out of the overall suite, Open MSS will be the first to be shipped commercially in the first quarter of this year followed by Open MGW. Flexi NS and Flexi NG, which are also part of the portfolio, have been available since 2010.
The new Open Core System is being launched at Mobile World Congress, 2011 in Barcelona, Spain.
Nokia Siemens Networks is a leading global enabler of telecommunications services. With its focus on innovation and sustainability, the company provides a complete portfolio of mobile, fixed and converged network technology, as well as professional services including consultancy and systems integration, deployment, maintenance and managed services.
On March 8th 2012, C Spire Wireless released details that it would roll out 4G LTE services by September 2012. The investment made by the company is $60 million and they would cover 2700 miles, a population of 1.2 million and more than 360 cell sites in 20 Mississippi markets, most of whom are first time consumers who have access to this high speed technology [1]. Its LTE service was officially launched in September 2012 [3]. An LTE net...
AT&T had developed a reputation for providing high-quality long distance telephone services. It moved rapidly to exploit this reputation in the newly competitive long distance market by aggressively marketing its services against MCI, Sprint, and other carriers. Also, AT&T had traditional strengths in research and development with its Bell Labs subsidiary. To exploit these strengths in its new global competitive context, AT&T shifted Bell Labs' mission from basic research to applied research, and then leveraged those skills by forming numerous joint ventures, acquiring NCR, and other actions. Through this process, AT&T has been able to use some of its historically important capabilities to try to position itself as a major actor in the global telecommunications and computing industry.
G in 1G, 2G, 3G and 4G stands for the “Generation” of the mobile network. Today, mobile operators have started offering 4G services a higher number before the ‘G’ means more power to send out and receive more information and therefore the ability to achieve a higher efficiency through the wireless network. During the time of 1G, radio signals were transmitted in ‘Analogue’ form. 2G networks on the other hand, were based on narrow band digital networks. The 3rd generation of mobile networks has become popular and users access the Internet over devices like mobiles and tablets. This means a 3G network actually allows for more data transmission and therefore the network enables voice and video calling, file transmission, internet surfing, online TV, view high definition videos, play games and much more. 4th Generation mobile networks are believed to provide many value added features.
There has been an increasing demand of telecommunication services in the last few decades which has led to an all time high demand of global operations in businesses , their capital investment as well as mobilization of the resources. This has further resulted in a lot of changes in the lifestyle of the people within specific geographies that includes an increasing demand for the latest of technology as well.
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
From 1980s – present many big mobile phones manufacturers like Ericsson, Nokia, Siemens, Motorola and NEC started adopting and applying new technologies in their products and to maximize the quality of reception and transmission.
On February 2011 Nokia, Inc., and Microsoft Corp. have announced plans for a “broad strategic partnership” under which Nokia will use Microsoft’s Windows Phone platform as a new operation system in it’s new smartphones. “Today, developers, operators and consumers want compelling mobile products, which include not only the device, but the software, services, applications and customer support that make a great experience,” Stephen Elop, Nokia President and CEO, said at a joint news conference in London. “Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It’s now a three-horse race.”
Ericsson was founded in 1876. It has its headquarters at Stockholm, Sweden. Ericsson is one of the giants coming up with vision of being prime provider in the enormous world of communication. Their networks sustain around Forty percent of mobile traffic globally. The networks covered by the sustain subscribers in abundance of 1 billion. They have the strongest position in the global scenario as more than 35000 patents have been granted buy them.
In September 2013, Microsoft acquired Nokia at a cost of $7 billion in a bid to strengthen its (Microsoft) position as one of the leading players in the mobile universe. This is strategic rationale in response to the fierce competition in the industry. Microsoft desires to enhance its market competitiveness. Before the partnership with Nokia, Microsoft was virtually irrelevant in the mobile market but its acquisition of Nokia has enabled the company make inroads in the lucrative smartphone industry. Nokia smartphones run on Microsoft’s Windows Phone 8 operating system. Sale of Nokia smartphones has gradually increased and Microsoft would benefit from the positive indicator if it had direct control of Nokia resources. Microsoft aspires to leapfrog iOS in the next 3 years and this would be possible if Nokia was acquired by a competitor. Indeed, if Nokia was acquired by a rival, Microsoft would have been kicked out of the smartphone industry.
In the infrastructure business, Nokia Networks had become a key supplier to all five GSM
...es with android and internet surfing features. It lost market share as it was not able to keep up with technology and now with mounting losses and sellout even die hard fans of the manufacturer have lost confidence in its products. However in partnership with Microsoft the firm has brought in several interesting smart phones which are slowly helping it regain its lost status and reputation. Even while making expensive smartphones the maker knows that it is the low end durable phones with basic features are what its customers’ desire therefore makes them too and tries to add latest features to make them viable. Whether this strategy of Nokia will help it through to manage competition and stay in the competitive cell phone market remains to be seen.
Today, Nokia is the world leader in mobile communications. The company generates sales of more than $27 billion in a total of 130 countries and employs more than 60,000 people. Its simple mission: to "connect people."
Summarizing above report indicate that Nokia has faced tremendous issues and challenge after the beginning of the smartphone series launch. Nokia was the leading position in headset market but introduction of apple iPhone in 2007 brought misfortune for Nokia. The drawback of Nokia actually was because it fails to meet the need of its consumer demand. Any organization must have effective and quick strategies to sustain and retain its consumers as an example from Nokia failed from the area that it had the stronghold.
By the end of 2003, Nokia was the clear market leader in the mobile phone industry in terms of sales and profitability. It was ahead of giant companies like Motorola, Ericsson, Siemens, Samsung, and other worthy competitors. Since the early 1990s, Nokia's Strategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks. This goal was achieved by Nokia's development of new products and expansion into new markets. In order to become the global leader as it is today, the company had overcome numerous challenges and obstacles over the last decade.
Another reason of this is better quality of product which means more featured with good quality of products of different other companies came into the competition which overcome Nokia and made it lagged behind. The competition has changed from the devices to software development. Reaction was very late although Nokia came to understand its condition in 2007.