The aim of this master`s thesis is to understand the changes which will happen in the mobile communication industry due to the introduction of UMTS and to develop a positioning strategy for mobile network operators in the future UMTS market in Russia.
The mobile communications industry is entering a new era. Here, not mobile telephony, but mobile data transmission is increasingly playing a leading role. A growing number of people use their mobile phone to send short messages or to receive information when they are on the move. The three markets telecommunication, information technology and multimedia are converging and paving the way for the information society. Mobile internet access is not only a vision, but is already in its first stages. The key word of this new era is “m-commerce”, the possibility to have communication, information, entertainment and transactions while mobile . The key enabler to bring all these services into the mobile environment is UMTS, the Universal Mobile Telecommunications System. It is the global telecommunication system of the third generation enabling data transmission of up to 2 Megabit per second.
This master’s thesis was written in co-operation with Siemens AG ICM N V118 sales Russian Federation. As vendor for infrastructure and applications for mobile communications as well as services and trainings for mobile network operators, Siemens has been active in Russia for several years. Due to its high growth potential the Russian mobile communications market is rather attractive for infrastructure vendors and, therefore, increasingly competitive.
Table of Contents
1. Introduction
1.1. Subject and objectives of the thesis
1.2. Delimitation of the topic
1.3. Methodology
2. Theoretical frame: Strategic management
2.1. Kurt Aeberhard: market system analysis
2.2. Michael Porter: the value system and strategic analysis of vertical integration
3. The mobile industry
3.1. Worldwide market trends
3.2. Evolution from mobile communications to mobile commerce
3.2.1. M-commerce - the new service possibilities
3.2.2. Changes in the market system
3.2.2.1. System analysis of the European mobile communications market
3.2.2.2. System analysis of the European mobile commerce market
3.2.2.2.1. Market players of the mobile commerce market
3.2.2.2.2. Environmental factors
3.2.3. The value system of the mobile commerce industry
4. The Russian mobile industry
4.1. Current development of the Russian mobile communications market
4.2. System analysis of the Russian mobile commerce market
4.2.1. Possible players of the mobile commerce market
4.2.2. Environmental factors
4.2.3. Market potential for mobile commerce: end user requirements
5. Strategic options for Russian mobile network operators
6. Conclusion
7. Bibliography
8. Annex
Research Objectives and Themes
This master's thesis aims to analyze the structural changes in the mobile industry resulting from the market entry of UMTS and to formulate a viable strategy for mobile network operators to successfully enter the mobile commerce market in Russia.
- Evolution of telecommunications from voice to mobile data transmission and mobile commerce.
- Application of strategic management models (Aeberhard's market system analysis and Porter's value system) to the mobile industry.
- Evaluation of the Russian mobile communications market environment and consumer potential.
- Strategic analysis of vertical integration into the mobile portal business for network operators.
Excerpt from the Book
3.2.1. M-COMMERCE - THE NEW SERVICE POSSIBILITIES
M-COMMERCE is defined by Lehman Brothers as the “use of mobile hand-held devices to communicate, inform, transact and entertain using text and data via connection to public and private networks.”
There are several approaches to define distinct categories of services which is a rather different task in view of the variety of the service possibilities. I chose the approach of Lehman Brothers because it shows the services from the customer’s point of view and not the technical features which stand behind them.
Lehman Brothers distinguish four main categories of services: communication, information, entertainment and transactions.
Communication services include short messaging, unified messaging, e-mail, chat rooms and video conferencing. It may be realised as one-to-one, one-to-many or many-to-many model.
The category “information” encompasses information services from content providers such as media companies (e.g. Reuters, Financial Times), from the world wide web, from corporate intranets, B2B portals and web pages.
Transaction services include for example booking and reservation, mobile shopping or banking.
Under entertainment Lehman Brothers include audio services, video and games.
Due to the fact that the boundaries between these categories are often vague, this is more a general framework, rather than a rigid segmentation.
Summary of Chapters
1. Introduction: Outlines the shift towards mobile data and UMTS, the cooperation with Siemens, and the research objectives regarding the Russian market entry.
2. Theoretical frame: Strategic management: Introduces Kurt Aeberhard’s market system analysis and Michael Porter’s value system model as the primary analytical frameworks for the thesis.
3. The mobile industry: Examines global trends and the transition to m-commerce, applying theoretical models to structure the mobile industry and its ecosystem.
4. The Russian mobile industry: Applies the developed market models to the current Russian reality, supported by an end-user survey to estimate market potential.
5. Strategic options for Russian mobile network operators: Conducts a strategic analysis of vertical integration, particularly regarding mobile portal entry, and assesses potential competitive dynamics.
6. Conclusion: Summarizes the thesis findings, reinforcing the recommendation for Russian operators to pursue vertical integration and secure a role as payment agents.
Keywords
UMTS, Mobile Commerce, Russia, Network Operators, Vertical Integration, Mobile Portal, Strategic Management, Market System Analysis, Porter's Value System, End-user Survey, Telecommunications, Mobile Data, GPRS, Business Strategy, Payment Agents.
Frequently Asked Questions
What is the core subject of this master's thesis?
The thesis focuses on the market entry of UMTS in Russia and the transformation of mobile network operators from voice providers to facilitators of mobile commerce.
What are the primary fields of research covered?
The research spans strategic management, mobile telecommunications market structures, European and Russian industry analysis, and end-user requirements for new mobile services.
What is the primary objective of this work?
The goal is to understand industry changes due to UMTS and to develop a concrete strategy for mobile network operators to successfully enter the future Russian mobile commerce market.
Which scientific methodology is employed?
The author uses a combination of literature analysis for theoretical foundations (Aeberhard and Porter) and empirical primary data collection via an end-user survey conducted in Moscow.
What is the focus of the main section?
The main section investigates the transition from mobile voice to data, analyzes the specific competitive landscape in Russia, and evaluates vertical integration options for operators.
Which keywords characterize the work?
Key terms include UMTS, Mobile Commerce, Russia, Network Operators, Vertical Integration, and Mobile Portals.
Why is the Russian mobile market considered attractive?
Despite economic volatility, the market is growing rapidly due to low fixed-line penetration and a high consumer demand for mobile-based information and transaction services.
What is the author's final recommendation?
The author suggests that Russian mobile operators should undertake vertical integration into the mobile portal business and aim to become the de-facto payment agents by acquiring banking licenses.
- Citar trabajo
- Anja Antropov (Autor), 2001, UMTS Market Entry in Russia, Múnich, GRIN Verlag, https://www.grin.com/document/147833
