As the essay stresses increased mobile penetration has led to positive outcomes such as improved communication, social inclusion, economic activity and productivity. The available research has also established an econometric relationship between mobile usage and GDP per capita growth. In the UK, the mobile telecommunications market generates more than £21 billion annually and the leading service providers include Vodafone, O2, and Orange. A significant segment of the mobile telecommunication sectors is dominated by the virtual network operators such as Virgin Mobile, Tesco Mobile, Giffgaff, Asda Mobile, Talkmobile, Vectone Mobile and BT Mobile.
This paper discusses that the UK telecommunication industry has recorded phenomenal growth as evidenced by the high number of mobile service providers. The current environment is encouraged by the deregulation of the market, and consumers are able to enjoy many differentiated offerings from the numerous operators. Competition in the industry has forced firms to adopt predatory pricing strategies and invest more in the data market. Currently, the UK has a population sixty million and the mobile penetration stands at around 80%, which means that there is still potential for growth. Furthermore, the threat of new entrants is very low as huge capital is required to set up shop in the UK. In the sector, name awareness is particularly important as it helps firms to associate their products with certain feelings which customers can identify with. At the same time, brand awareness provides customers with a sense of familiarity and as a result, customers are less willing to switch to other competing firms. As Brassington and Pettitt (2000) observe, firms in the mobile service sector promote brand awareness by increasing symbol exposure, publicity and through event sponsorship. Vodafone was established on 1st January 1985, and was the first cellular network company to launch in the UK. A few years later, the company expanded its presence through acquisition of Racal Telecom and Cable & Wireless. In the subsequent years, the company registered huge success and its first high street store was established in 19993. 1n 1990s, the