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Strategic focus of incumbents in the European telecommunications industry: The cases of BT, Deutsche Telekom and KPN

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  • van Kranenburg, H.L. (Hans)
  • Hagedoorn, John

Abstract

This study investigates the internal and external strategic choices that telecommunications firms, operating in a dynamic network environment, make to adapt to changes and to respond quickly in order to create or to sustain their competitive advantage. In particular, in the European telecommunications industry incumbent firms have faced important challenges from new technologies, liberalization and the convergence of markets. The leading European telecommunications companies initially focused on new markets and new businesses, emphasizing their plans to become major players in relevant markets. However, after the telecommunications euphoria companies were more restrained due to their huge burden of debt and their market value. Through refocusing or restructuring, these companies have tried to streamline their businesses in order to restore their value and to improve their competitiveness. Insight into the specific strategic actions of traditional telecommunications companies in Europe to the recent developments in the industry is provided from the analysis of three leading traditional telecommunications companies: BT, Deutsche Telekom and KPN.

Suggested Citation

  • van Kranenburg, H.L. (Hans) & Hagedoorn, John, 2008. "Strategic focus of incumbents in the European telecommunications industry: The cases of BT, Deutsche Telekom and KPN," Telecommunications Policy, Elsevier, vol. 32(2), pages 116-130, March.
    • Handle: RePEc:eee:telpol:v:32:y:2008:i:2:p:116-130
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    Cited by:

    1. Troulos, Costas & Maglaris, Vasilis, 2011. "Factors determining municipal broadband strategies across Europe," Telecommunications Policy, Elsevier, vol. 35(9), pages 842-856.
    2. Mihaela STEFAN & Andreea MARIN-PANTELESCU & Mirela TÃœRKES, 2018. "Strategic Management Of The Romanian Telecommunication Services," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(1), pages 451-461, November.
    3. Moreno, Plácido & Lozano, Sebastián & Gutiérrez, Ester, 2013. "Dynamic performance analysis of U.S. wireline telecommunication companies," Telecommunications Policy, Elsevier, vol. 37(6), pages 469-482.
    4. Hagedoorn, John & Wang, Ning, 2010. "Is there complementarity or substitutability between internal and external R&D strategies?," MERIT Working Papers 2010-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Navío-Marco, Julio & Arévalo-Aguirre, Adrian & Pérez-Leal, Raquel, 2019. "WiFi4EU: Techno-economic analysis of a key European Commission initiative for public connectivity," Telecommunications Policy, Elsevier, vol. 43(6), pages 520-530.
    6. Wangsik Kim, 2008. "The Context of EU Telecommunications Reform Process: The Cases of Britain and Germany," International Review of Public Administration, Taylor & Francis Journals, vol. 13(1), pages 117-136, May.
    7. Peter Ross & Greg J. Bamber, 2009. "Strategic Choices in Pluralist and Unitarist Employment Relations Regimes: A Study of Australian Telecommunications," ILR Review, Cornell University, ILR School, vol. 63(1), pages 24-41, October.
    8. Wehrheim, David & Dalay, Hakkı Doğan & Fosfuri, Andrea & Helmers, Christian, 2020. "How mixed ownership affects decision making in turbulent times: Evidence from the digital revolution in telecommunications," Journal of Corporate Finance, Elsevier, vol. 64(C).
    9. Michalski, Hans-Jürgen, 2015. "Der Wandel der Telekommunikationsindustrie im 21. Jahrhundert: Eine international vergleichende Analyse der Unternehmensstrukturen und -strategien weltweit führender Telekommunikationskonzerne," Study / edition der Hans-Böckler-Stiftung, Hans-Böckler-Stiftung, Düsseldorf, volume 127, number 296.
    10. Navío-Marco, Julio & Arévalo-Aguirre, Adrian & Pérez-Leal, Raquel, 2018. "WiFi4EU: Techno-economic analysis of a key European Commission initiative for public connectivity," 29th European Regional ITS Conference, Trento 2018 184973, International Telecommunications Society (ITS).
    11. Grove, Nico & Baumann, Oliver, 2012. "Complexity in the telecommunications industry: When integrating infrastructure and services backfires," Telecommunications Policy, Elsevier, vol. 36(1), pages 40-50.
    12. Curwen, Peter & Whalley, Jason, 2013. "Mapping worldwide mobile networks: Some problems and indicative solutions," Telecommunications Policy, Elsevier, vol. 37(11), pages 1150-1165.
    13. Häberle, Robin & Grove, Nico, 2012. "Collaborative product development: The case of network operators," 23rd European Regional ITS Conference, Vienna 2012 60371, International Telecommunications Society (ITS).
    14. Navio-Marco, J & Solorzano-Garcia, M & Urueña, A., 2015. "Language As Key Factor Of Long-Term Value Creation In Mergers And Acquisitions In The Telecommunications Sector," 26th European Regional ITS Conference, Madrid 2015 127170, International Telecommunications Society (ITS).
    15. Hagedoorn, John & Wang, Ning, 2012. "Is there complementarity or substitutability between internal and external R&D strategies?," Research Policy, Elsevier, vol. 41(6), pages 1072-1083.
    16. Garrido, Elisabet & Whalley, Jason, 2013. "Competition in wholesale markets: Do MNOs compete to host MVNOs?," Telecommunications Policy, Elsevier, vol. 37(11), pages 1124-1141.
    17. Hans van Kranenburg & Gerrit Willem Ziggers, 2013. "Dynamic competition and ambidexterity," Chapters, in: Ruth Towse & Christian Handke (ed.), Handbook on the Digital Creative Economy, chapter 6, pages 57-66, Edward Elgar Publishing.
    18. Häberle, Robin & Grove, Nico, 2012. "Collaborative product development: The case of network operators," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72517, International Telecommunications Society (ITS).
    19. Clifton, Judith & Díaz-Fuentes, Daniel & Revuelta, Julio, 2009. "Explaining Telecoms and Electricity Internationalization in the European Union: A Political Economy Perspective," MPRA Paper 33037, University Library of Munich, Germany.
    20. Judith Clifton & Francisco Com�n & Daniel D�az-Fuentes, 2011. "From national monopoly to multinational corporation: How regulation shaped the road towards telecommunications internationalisation," Business History, Taylor & Francis Journals, vol. 53(5), pages 761-781, August.

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