Mobile phone technology has evolved rapidly in recent years. In particular the mobile phone industry is now witnessing the development of third generation or 3G mobile technologies. While these 3G technologies appear to provide a number of market and financial benefits for the mobile phone company, research on third generation technologies seems to suggest that these technologies are still highly speculative. As such, the decision of the mobile phone company to adopt 3G technologies must be considered in terms of potential benefits and risks.With the realization that third generation technologies pose such a substantial risk for the mobile phone company, there is a clear impetus to examine the risks and benefits of implementing these technologies. Utilizing this as a basis for investigation, this research considers the benefits and risks associated with the implementation of 3G technologies at Vodafone. Through a careful consideration of what has been written about the benefits and drawbacks of 3G technologies and a review of the Vodafone organization and its current market position, it will be possible to provide a comprehensive overview of the potential risks that would be associated with Vodafone's decision to implement this new technology.
[...] The 3G network uses the 2100MHz frequency, while the existing 2G network operates at the 900MHz frequency band (GSM) and 800MHz” (3G mobile The frequency at which new 3G phones operate is of critical importance to improving the data capacity and throughput that can be achieved on these devices. “This high-speed data capacity enables more content to be sent to and from mobile handsets through calls, messaging and internet-based content.” The new technology enables features such as “video phone calls, video message bank, internet and email, real-time interactive gaming and media streaming, such as news, weather and dedicated TV shows” (3G mobile The features that are enabled with this change in mobile phone technology have prompted considerable over 3G. [...]
[...] When examined overall, it appears as if Vodafone has both the reputation and sheer financial size to manage the implementation of 3G technologies. However, a review of the organization's weakness demonstrates that Vodafone may incur some notable difficulties when it comes to changes that require considerable capital outlays. Exploring the weaknesses of Vodafone, researchers note that the organization is currently carrying a considerable amount of debt. company has a net debt of around 8.3 billion” (p. 6). Experts argue that this debt load could have a notable impact on the ability of the organization to undertake new projects. [...]
[...] Vodafone and 3G Given the strengths and weaknesses of the Vodafone organization, it is now possible to examine the overall risks and benefits associated with the decision of the organization to implement 3G technologies. From a market standpoint, it is evident that if Vodafone wants to remain an industry leader it will have no choice but to implement 3G technologies. With more than 1.6 billion customers worldwide, the 3G revolution has clearly taken hold. If Vodafone is to compete in an increasingly competitive environment, the organization will have to make some effort to offer 3G technologies to its customers. [...]
[...] Although the implementation of 3G technologies in the Vodafone organization appears to be the best solution to the organization's financial problems, the reality is that the decision to implement this technology still carries with it considerable risk. In order to invest in this technology, Vodafone will need to further indebt the organization. While this risk may viewed as necessary to keep the organization competitive and further to ensure the profitability over the long-term, one needs to consider that the mobile phone industry is not standing still. [...]
[...] Vodafone—A Review With the basic context of 3G technologies and their benefits and drawbacks elucidated, it is now possible to consider specific information about the Vodafone organization and its bid to implement 3G technologies. A critical review of what has been written about the Vodafone organization shows that, at the present time, this organization is the largest cellular company in the world. the end of March 2005, the company had equity interests in 26 countries, through its subsidiary undertakings, associated undertakings and investments” (Datamonitor p. [...]
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