What Factors Are Likely to Affect the Mobile Industry

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What critical factors are likely to affect the mobile network industry over the immediate period up to the time horizon and to whom the costs or benefits are likely to accrue. ------------------------------------------------- In our society, mobile phones have become a necessity and we strive to find the best deals suitable for our lifestyle and needs. A mobile phone is unable to function without a network. Networks are provided by telecommunication companies. There are a number of mobile networks in the UK, and mostly all have a substantial share in the market. Vodafone, T-mobile, O2, 3, and Orange are the main providers in this market, with the merger of T-mobile and Orange having the largest share. As shown on figure 1. Competition in this sector is fierce, and has been for many years. Figure 1: UK mobile operator market share (image from www.telecomsmarketresearch.com/resources/UK_Mobile_Operator_Subscriber_Statistics.shtml) PESTEL analysis PESTEL analysis is tools used by organisations making strategies by helping them understand the external environment in which they operate now and will operate in the future. 1 Political factors include tax rates, political stability and trade embargo. Political seem to have little effect on mobile networks. The mobile networks over the years had shifted from pay as you go services, a plan where customers top up and money is spent on amount of times the phones is used, to a monthly plan, this ideally being a contract where the customer is allocated minutes within a certain time, which cancels out any effect of increase in tax. Economic factors can have a small affect on the mobile networks. This includes exchange rates, interest rates and the economic state i.e. recession or boom. Increment in the interest rate might have an indirect effect on the technological aspects of the mobile networks. For
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