The most successful mobile operators have achieved more than three times the growth of their competitors by focusing on three distinct strategies, according to a new study by Ericsson.
In collaboration with Ernst and Young (EY), Ericsson has conducted a study of mobile operator strategies.
The report finds that mobile operators considered frontrunners increased revenues at a 9.6% CAGR between 2010 and 2014, compared to a mere 2.7% CAGR for their competitors.
In markets with no frontrunners, average CAGR for this period was -1.4%, underscoring the challenges mobile operators are facing in terms of declining traditional revenues.
Frontrunners in their respective markets focused on differentiation through high-performing networks and brand preference, the report states. They adapt quickly to changing market conditions, and are first to market with uniquely designed offerings.
In addition, frontrunners view connectivity and services as differentiators rather than commodities. They typically display greater interaction between marketing and technical roles and seek to use superior network performance as a differentiator.
The report notes that frontrunners are not necessarily market leaders – in 2013, most of the 12 identified frontrunners were number three by market position. But by the end of this year it is expected that frontrunners will have representation across the top three market slots.
“We clearly see that despite their different strategies, frontrunner operators share a common commitment to network quality,” EY executive director of Nordic advisory Martin Sebelius said.
“Not surprisingly, Frontrunners constantly seek new ways of challenging industry conventions to make connectivity more relevant to people, business and society."