Abstract
The telecommunication industry is different from other industries in the basis of innovation rate. This industry continuously provides end users with new technological generations and disruptive technologies. Due to the complexity of the nature of the product served, telecommunication industry is an important case to study in order to explain the real reasons for the challenges facing telecom companies. Researching in this area will explain why some companies survive while others fail. The wide range served technology innovations is most likely to result in rapid mutation of consumers’ spending habits thus directly influencing the mobile phone companies. The aim of this is to test the reliability of innovations and its impact on companies’ profitability. For that purpose, a survey with 200 end users and 20 employees from two telecom providers (“Alfa, and “Touch”) was conducted to investigate various disruptive and conventional means and their impact on the financial performance of telecom industry. The results show that most of the revenue of telecom industry comes from usage of data while the industry is lacking for competition, and quality services while charging high tariffs for customers. Currently customers are migrating to data, therefore performing a pressure on the industry to improve its services. To conclude, network operators need to decide what to they want to sacrifice and how far they want to go to reach targeted results.
Highlights
The mobile telecom industry is changing and the competitive landscapes for mobile network operators are disrupted
The basis of competition changed representing a shift from “mobile telephony” to “mobile computing” (VisionMobile, 2012). This sector is playing a key role in the Lebanese economy even if it is performing below
This study aims to shed the light on the relation between disruptive innovation and value migration
Summary
The mobile telecom industry is changing and the competitive landscapes for mobile network operators are disrupted. The basis of competition changed representing a shift from “mobile telephony” to “mobile computing” (VisionMobile, 2012) Today, this sector is playing a key role in the Lebanese economy even if it is performing below Page. Despite the small population and high urbanization level-Lebanon-- is one of few countries in the Middle East and North Africa Region of mobile phone penetration rate less than 100% in the end of 2012 (BMI, 2013). This trend attributed to low competition in the market, which kept tariffs relatively high and delayed the roll out of network services to underserved areas. Lebanon's young and well-educated population will continue to drive demand for advanced communication services (BMI, 2013)
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