The main construct of this section is Michael Porter's Five Forces model, which is drilled into every MBA's head as a comprehensive tool for strategic analysis of an industry. Barriers to Entry are high . The ownership of the cellular license is a monumental barrier to entry. Switching costs are high for a current user of wireless to switch to another provider. Most cellular service contracts require hefty early cancellation fees.
Proprietary experience is limited.
However, with growing numbers of joint ventures in the wireless industry, talent moves around in a fairly fluid fashion, mitigating the effects of the barrier. Access to capital. For new entrants, the cost of the license, infrastructure and customer acquisition must be funded well in advance of positive earnings. External funds and supplier credits may be required for up to four years from the start of operations. Threat of Substitutes products is low.