Impact of Disruptive Innovations on Mobile Telecom Industry in Lebanon

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.

Keywords: {'name': 'Telecom Industry'}, {'name': 'Distruptive Innovation'}, {'name': 'Profitability'}, {'name': 'Mobile Phones'}

Authors & affiliations

Wael Bakhit
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.1002/smj.246

Adner, R., & Zemsky, P. (2005). Disruptive Technologies and the Emergence of Competition (Vol. 36). The RAND Journal of Economics.

Ahonen, T. (2011). Insiders Guide to Mobile: The Customers, Services, Apps, Phones and Business of the Newest Trillion Dollar Market. TomiAhonen Consulting.

Ahonen, T. (2012). Phone Book 2012: Statistics and facts on the Mobile Phone Industry. TomiAhonen Consulting.

DOI: 10.2139/ssrn.919900

DOI: 10.3917/dec.alter.2002.01

DOI: 10.2139/ssrn.2034266

Asso, P., Kahn, G., & Leeson, R. (2007). The Taylor rule and the transformation of monetary policy. Monetary Policy Rules: From Adam Smith to John Taylor (p. 41). Kansas: Federal Reserve Bank of Kansas City, Economic Research Department.

Backus , D., & Kehoe, P. (1992). International Evidence on the Historical Properties of Business Cycles,. American Economic Review, 82(4), 864-888.

DOI: 10.2139/ssrn.147549

DOI: 10.3386/w5022

DOI: 10.3386/w7559

DOI: 10.1016/S1574-0048(99)10034-X

BIS. (2009). Retrieved from www.bis.org

BMI. (2013). Lebanon This Week (Vol. 320). Beirut: Research Economic Research & Analysis Department: Byblos Bank.

DOI: 10.1177/002795010519200109

DOI: 10.2139/ssrn.846305

DOI: 10.1002/(SICI)1097-0266(199603)17:3<197::AID-SMJ804>3.0.CO;2-U

DOI: 10.1111/1467-8551.00147

DOI: 10.20955/r.84.35-42

DOI: 10.1093/oxfordhb/9780199234257.003.0016

DOI: 10.1016/S0165-1765(03)00152-6

DOI: 10.2139/ssrn.1210362

CBO. (1995). Method For Estimating Potential Output. Washington.

CBO. (1995). Method For Estimating Potential Output. Washington.

CBO. (2003, 2004). CBO's method for estimating potential output. The Congress of the United States, Congressional Budget Office.

CBO. (2004). CBO's method for estimating potential output. The Congress of the United States, Congressional Budget Office.

Cechetti, S. G., Genberg, H., Lipsky, J., & Wadhwani, S. (2000). Asset Prices and Central Bank Policy. Geneva: ICMB and CEPR.

DOI: 10.2307/30035961

Charitou, C. D., & Markides, C. C. (2003). Responses to Disruptive Strategic Innovation. MIT Sloan Management Review.

DOI: 10.2307/1910133

Christensen, C. M. (2003). The Innovator’s Solution: Creating and Sustaining Successful Growth. Cambridge MA: Harvard University Press.

DOI: 10.1111/j.1540-5885.2005.00180.x

Christensen, C. M. (2013). Disruptive Innovation. http://www.claytonchristensen.com/key-concepts.

Christensen, C. M., E., R. M., & M., V. (2001). Skate to where the money will be. Harvard Business Review.

DOI: 10.1016/S0014-2921(98)00016-6

Committee, M. o. (2009 йил 3-4-November). Board of Governors of the Federal Reserve System. From http://www.federalreserve.gov/monetarypolicy/files/fomcminutes20091104.pdf

DOI: 10.1111/j.0737-6782.2004.00076.x

Dan, Y., & Chieh, H. (2008). A Reflective Review of Disruptive Innovation Theory. PICMET 2008 Proceedings, Cape Town.

DOI: 10.1111/j.1540-5885.2005.00174.x

DOI: 10.2139/ssrn.285413

Friedman, M., & Schwartz, A. (1960). A monetary history of the United States, 1867-1960. Princeton University Press.

Gilbert, C., & Bower, J. L. (2002). Disruptive Change – When Trying Harder Is Part of the Problem (Vol. 80). Harvard Business Review.

Goodhart, C. (1988). The evolution of central banks (Vol. 1). MIT Press Books.

DOI: 10.2307/2235461

Goodhart, C., & Hofmann, B. (2000). Financial Variables and the Conduct of Monetary Policy.

Goodhart, C., & Hofmann, B. (2002). Asset Prices and the Conduct of Monetary Policy. Royal Economic Social Annual Conference.

DOI: 10.1111/j.1540-5885.2005.00176.x

DOI: 10.2307/2953682

Hoffmann, B. (2012). Taylor rules and monetary policy: a global “ Great Deviation ”? BIS Quarterly Review.

Johnson, G. W. (2011). Stratégique. Paris: Pearson Education France.

Johnston, L., & Williamson, S. (2013). What was the U.S. GDP then ? . Retrieved 2013, from measuring worth: www.measuringworth.com/usgdp/

Judd, J. P., & Rudebusch , G. D. (1998). Taylor's Rule and the Fed: 1970-1997. Economic Review-Federal Reserve Bank of San Francisco, 3-16.

Kahn, G. (2009). Taylor rule deviations and financial imbalances. Economic Review(Q II), 63-69.

Louis, F. R. (n.d.). Central To America's Economy. Retrieved from http://www.stlouisfed.org/

DOI: 10.1111/j.1540-5885.2005.00177.x

DOI: 10.1111/j.1540-5885.2005.00177.x

Mayrhofer, U. U. (2011). Management international: Des pratiques en mutation. Paris: Pearson Education France.

DOI: 10.1016/0167-2231(88)90011-5

DOI: 10.1016/S1574-0048(99)10036-3

DOI: 10.3386/w7725

DOI: 10.17016/FEDS.1998.03

DOI: 10.1257/aer.91.4.964

DOI: 10.1016/S0304-3932(03)00065-5

DOI: 10.1016/S0304-3932(03)00065-5

DOI: 10.2139/ssrn.655230

DOI: 10.1016/S0148-6195(99)00031-4

DOI: 10.3386/w11728

DOI: 10.1162/003465302317411604

DOI: 10.1257/aer.101.5.1676

DOI: 10.1016/S0304-3932(02)00149-6

DOI: 10.3386/w6512

Salz, P. A. (2011). The Netsize Guide: Truly Mobile, Gemalto.

DOI: 10.1111/j.1467-8691.2009.00507.x

DOI: 10.1142/S1363919604000988

Schumpeter, J. (1935). Théorie de l'évolution économique. Paris: Dalloz.

Sharma, C. (2012a). Operator’s dilemma (and opportunity): the 4th wave. Mobile Future Forward.

Sharma, C. (2012b). State of Global Mobile Industry Annual Assessment 2012. Mobile Future Forward.

Slywotzky, A. J. (1996). Value Migration. Boston: Harvard Business School Press.

Steinbock, D. (2005). The Mobile revolution - The making of mobile services worldwide. Kogan Page Limited.

DOI: 10.1504/IJEIM.2012.050442

DOI: 10.1257/jel.41.2.426

DOI: 10.1016/0167-2231(93)90009-L

DOI: 10.1016/S0304-3932(99)00008-2

DOI: 10.1111/j.1540-5885.2005.00179.x

Thomond, P., & Lettice, F. (2002). Disruptive Innovation Explored. Concurrent Engineering Conference Proceedings.

DOI: 10.1142/S1363919605001162

VisionMobile. (2011a). Developer Economics 2011.

VisionMobile. (2012a). The Telco Innovation Toolbox: Economic Models for Managing Disruption and Reinventing the Telco 2013. In association with Ericsson.

VisionMobile. (2012b). Mobile Industry Dynamics 2012.

Wessel, M., & Christensen, C. (2012). Surviving Disruption. Harvard Business Review.