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network
maintenance
services
provisioning network Equipment Manufacturers
infrastruc-
ture telcos UNBUNDLING BUSINESS PATTERNS
operation & Telcos such as France Telecom, KPN, and Vodafone have outsourced operation
maintenance
and maintenance of some of their networks to equipment manufacturers such
network
as Nokia Siemens Networks, Alcatel-Lucent, and Ericsson. Equipment manufac-
turers can run the networks at lower cost because they service several telcos at
a time and thus benefi t from economies of scale.
economies of scale 63

Unbundled Telco PATTERNS
acquisition
retention After unbundling its infrastructure business, a telco can sharpen its focus on
voice branding and segmenting customers and services. Customer relationships
network installed
data customer comprise its key asset and its core business. By concentrating on customers
operators base
content
brand and increasing share of wallet with current subscribers, it can leverage invest-
Customer Relationship retail
customer ments made over the years acquiring and retaining customers. One of the fi rst
base
mobile telcos to pursue strategic unbundling was Bharti Airtel, now one of
India’s leading telcos. It outsourced network operations to Ericsson and Nokia
marketing service revenues Siemens Networks and IT infrastructure to IBM, allowing the company to focus
on its core competency: building Customer Relationships.

r&d
Content Providers
new
products telcos For product and service innovation, the unbundled telco can turn to smaller,
& services creative fi rms. Innovation requires creative talent, which smaller and more
intel-
lectual dynamic organizations typically do a better job of attracting. Telcos work
property
with multiple third-parties that assure a constant supply of new technologies,
services, and media content such as mapping, games, video, and music. Two
examples are Mobilizy of Austria and Sweden’s tat. Mobilizy focuses on
licensing fees
location-based service solutions for smartphones (it developed a popular mobile
travel guide), and tat concentrates on creating advanced mobile user interfaces.

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