- Published: September 22, 2022
- Updated: September 22, 2022
- University / College: University of Oregon
- Level: Doctor of Philosophy
- Language: English
- Downloads: 20
1. Being a first mover in the telecommunication industry affords BT a well-structured and well-distributed network across the United Kingdom. Becausethere is not much competition yet, it can easily achieve its target such as achieving its target of 6 million broadband lines by the summer of 2005 only after five years when it was launched (it was launched in 2000). Being a first mover, BT is also in a position to provide or deny other telecommunication operators access to its copper local loops to connect directly with their customers which it could charge and become an additional source of its revenue.
4. Competitors focus on low-price broadband and phone services has been the main competitive advantage of BT’s competitors such as TalkTalk. Low cost broadband and phone service providers such as TalkTalk is a potent threat to BT’s market position that in March of 2010, TalkTalk announced a £115 million profit before tax while BT suffered a loss for months. Being a first mover does not ensure an edge in the local market because subscribers will readily switch to low cost providers.
5. Price and technology is always a challenge for BT in international market. Low cost broadband providers and technologically advanced broadband providers put pressure on BT in local and international markets that makes it less competitive and/or erodes its market share. Being a first mover nor its size does not ensure its dominance in international market because there are also numerous players who could provide the same service (and even better) at a price that is lower than BT.