| Innovation |
|
| Takes place in both target
and technical uncertainties |
|
| Target: there is no
defined market for early innovators |
|
| Markets tend to grow around
these innovations. In the early stages it’s not clear who the target is or
what products will best serve their interests. |
|
| Technical |
|
| In the early stages R&D
is diffuse, firms have no idea where to put their bets. It’s fluid process
innovation takes a back seat to product innovation. |
|
| Cell Phones |
|
| 10 years ago the market
hardly existed. Now more than half the phones worldwide are mobile.. In
Nordic countries 10 cellulars being added for each ground line.Make money two
ways: cellular nets and access to ground nets. |
|
| Cell technology originally
implemented in 1984. A duopoly set up by the FCC in 734 markets. One to local
line carrier, other auctioned. |
|
| Cellular companies are each
granted 25 Mhz of the spectral division in the 800-900 MHz region, each split
between the two directions of communications. Typical analog systems such as
AMPS employ FDMA schemes that divide the spectral allocations into uniform
frequency channels in the range of 25-30 kHz wide. Applying simple algebra
shows the approximate number of channels to be around 416. This number,
although appearing somewhat large, is rather small with respect to data
communications. |
|
| CDMA and TDMA are competing
digital standards. |
|
| The GSM (Global System for
Mobile Communications) system, which was launched as the European digital
cellular standard in 1992, continues to spread rapidly and currently has over
25 million subscribers (as of the end of 1996). It makes available a range of
attractive services such as data communications and messaging which continue
to enhance its popularity. |
|