Trends Report

UK Telecom Operators Join Forces To Fight Market Disruption

Product Strategists Should Employ Joint Ventures To Avoid Irrelevance

July 5th, 2011
Thomas Husson, Vice President, Principal Analyst
Thomas Husson Vice President, Principal Analyst
With contributors:
J. P. Gownder , Andia Vokshi

Summary

On June 16, 2011, the main UK telecom operators — Everything Everywhere, Telefónica UK, and Vodafone — announced they would form a mobile marketing and payments joint venture. This is neither the first nor the last in a long series of new types of collaboration among telcos. Why? Because they have to join forces to compete with global players like Apple and Google, which are increasingly bypassing them. By doing so, they can more successfully launch new interoperable services, but their success is far from guaranteed. Consumer product strategists at operators must ensure timely and accurate implementation of this new collaborative approach while ensuring that they maintain the differentiation of their respective payment and marketing offerings.

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