Research Notes

The path to success on the mobile broadband market is called partnerships

In the telecom industry we are seeing an increasing number of players that have based their business on partnerships. But launching partnerships is one thing – being successful with one’s partnerships is a whole different ball game.
On the mobile broadband market, partnerships are much more than just ensuring wide distribution – they are also about reducing production costs and building a strategic position in preparation for the day when the market is hit by consolidations.
For companies that want a central role on the future market it is important to initiate partnerships, ensuring that they are ready when they, their competitors or their partners are forced to consolidate.
In Strand Consult’s new report “Successful Strategies in the Mobile Broadband Market”, we have analysed in depth the changes currently happening on the mobile broadband market – areas that one ought to focus on when designing a partner strategy. We believe that it is important to focus on:
Infrastructure partners – On a market where capacity is growing faster than demand, a number of infrastructure providers will be forced into some sort of consolidation. This will in practice result in either being able to purchase inexpensive network capacity, or alternatively that one’s infrastructure partner is purchased by a competitor.
Distribution partners – The broadband market player that has the best partner strategy will be in a position to achieve the largest market share. On the other hand, players in this market will always be in a situation where they risk that their partners either move within the value chain, or alternatively are purchased by competing companies.
Services partners – On the future mobile broadband market the main focus will be on creating value – value through services and partners that have an ability and willingness to create traffic on the mobile broadband provider’s network. On this type of market the question is whether one should focus on exclusive partnerships, or alternatively focus on the service market developing in an open-garden direction corresponding to today’s mobile services market.
All in all, a market player that wants to have a successful partner strategy needs to be very focused and ensure that they have taken into account the structural changes that the mobile broadband market will experience over the coming years. The path to success is very simply analysing the market and focusing on creating the partnerships that must be in place for tomorrow’s market.
We have thoroughly examined and analysed these – and many other issues – in our new report “Successful Strategies in the Mobile Broadband Market“. The report is therefore an efficient tool for mobile broadband providers in their efforts to create and implement an optimal strategy.

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