Starting from scratch [telecommunication services]

The last few years have seen an explosive growth in the number of telecommunications service providers operating in the UK market. This phenomenon was initiated by regulatory changes, but has since driven forward by a number of other factors that have created an environment in which new telecommunications businesses can set up and grow. New operators are exploiting technology to build low-cost operations that are highly responsive to customer needs. Not only has this enabled these operators to create new market niches for themselves, but it has also allowed them to move into areas of the market where existing operators are already well established. This paper reviews the factors that have lead to growth of these new operators. It also considers the opportunities and the pitfalls of starting from scratch in telecommunications, and the ways in which the new operators have approached the problem of building viable businesses with sustainable competitive advantage