PEST analysis of uk mobile network industry Essay Example

limited number of network operators. Specifically, Vodafone and Telecom Securicor Cellular Radio Limited (now O2) had insufficient infrastructure leading to inadequate network coverage.

In the early 1990s, the second generation (2G) of mobile phones emerged, utilizing digital technology instead of analogue. The Global Systems for Mobile Communications (GSM) played a crucial role in enabling this transition to 2G, resulting in encoded voice conversations and the availability of data services such as short messaging services (SMS). Consequently, there was an increase in network operators and widespread adoption among consumers.

Starting in 1991, the mobile phone industry in the UK experienced rapid expansion, with 1.1 million subscribers recorded. This growth continued and reached 5.4 million subscribers in 1995 and an impressive 40.1 million subscribers by 2000.

After around ten years, 2G technology dominated until it was replaced by the introduction of high-speed data capabilities and additional non-voice services like internet access with the arrival of 3G services in 2003.

As a result, despite market saturation, there was a significant increase of 15% in subscribers during the year of 2004.

The introduction of 3G technology led to a significant increase in the customer base of network operators, growing from 4.7 million to 12.5 million by the end of 2007. However, as mobile phone usage became more widespread, this growth eventually reached a plateau. Since 2001, the industry has experienced slower growth, with technological innovation and product differentiation becoming the main factors driving it.