During 1999, leading mobile operators have committed hundreds of billions of dollars to international takeover bids. According to Mobile Market Leaders , a new report from telecoms consultancy Analysys, this internationalisation is being driven by the pressures on operators in their domestic markets, together with the perceived opportunities overseas. Established operators in well-developed home markets are facing some difficult choices.
Fierce competition continues to drive prices down as more licences are awarded and markets mature.
The imperative is for new sources of revenues and profits. The attraction of overseas ventures is that less mature markets still offer good returns, while in established markets there are opportunities to add value by offering a genuinely international service. Operators will increasingly be confronted with a stark choice buy or be bought. As players jockey for position, old alliances will be disrupted and new ones formed. Operators will find that they are competing in some markets and co-operating in others, which will place new and challenging demands on their management.