A further important aspect for the network operator is the need for flexibility concerning the time at which the new technology standard is to be introduced. The correct timing for and implementation of the introduction of new services is of strategic importance to the telecommunications provider. However, if the new services can be supported by the existing network technology, and can even co-exist with existing services, then this gives the operator an incredible advantage in that they are free to choose the point in time for market entry flexibly. The ability to introduce services rapidly as demanded, and the reduced risk of making investments into potentially redundant network infrastructure in a poor market environment are two strong arguments in favor of this strategy.  

New producer strategies 

And how do things look for the infrastructure producers? At first glance things look fine. The introduction of a new technology standard provides the opportunity of new turnover with existing customers, and maybe also with new ones. In the past the challenge for the producers was that they not only had to provide a convincing and stable technological solution, but also an aggressive development strategy to be able to achieve market entry as quickly as possible.

These two objectives are not necessarily in line with one another. If the market launch is too early then the price may be poor quality and network instability, leading to negative effects on the company’s profit and loss account which are no less significant than those which would result from the introduction of a perfect technical product too late, and missing the boat in the race for customers. However, the evolutionary transition which is now demanded has changed this situation and provides, as so often, new opportunities but also new challenges.

Generally speaking, producers want to find ways of convincing operators to invest in new, more advanced network technology. The ability to integrate the operator’s installed network technology has always been a strong sales argument. But, particularly in the case of the transition to a new technological generation, the complex market requirements have nevertheless led to the introduction of rather specific product solutions. Aggressive time plans for the launch of new networks have represented a further barrier to the search for and application of solutions which enable more effective interaction between different technological generations.

For the introduction of the 4G standard the emphasis will no longer be on presenting the customer with an independent technological solution which offers optimal technical performance, but which cannot be integrated in the network technology already in use. The infrastructure providers must develop a strategy which allows a more-or-less seamless transition from one generation to the next. In other words: the network itself will have to be able to network through the inclusion of the components necessary to achieve this seamless transition.   
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