WiMax and Business Model Innovation
I had to think of this smart little quote of C.K.Prahalad when reading this article on the emerging business of WiMax connectivity:
Strategy is about stretching limited resources to fit ambitious aspirations.
(Spectrum) resources are always limited for upstarts, partly due to incumbents hoarding them (and because of government reserved space like in this case spectrum as well) … while ambitions and potential are huge, so strategic innovation and will determine about success.
Alas, not only competitive strategy reasoning is needed, but also a deep understanding of the complexities of the marketplace and upcoming players, newcomers that:
enter the communications market, creating a challenge to existing service providers and equipment makers alike
This will also open up a new playing field for business model innovations, as deadlocked business models and slow-moving incumbents will be bypassed.
WiMax platform’s ability to deliver lots of capacity at lower prices could be very disruptive to existing broadband business models. When you put voice over WiMax, it could also disrupt the wireline and wireless voice businesses […]
because
WiMax has the power to disrupt the telecom market by throwing control of the customer up for grabs. […] WiMax eliminates the need for a fixed broadband connection in the home […] to completely bypass the telecom companies. And as WiMax goes mobile, it will allow upstarts to bypass the wireless phone companies, too.
