Real options and technology management: Assessing technology migration options in wireless industry |
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Authors: | Hak J Kim Martin BH Weiss Benoit Morel |
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Affiliation: | 1. University of Houston-Clear Lake, MIS, Houston, TX 77058, United States;2. University of Pittsburgh, Department of Information Science and Telecommunications, United States;3. Carnegie Mellon University, Department of Engineering and Public policy, United States |
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Abstract: | The wireless industry is currently undergoing a major transition from second generation (2G) to third generation (3G) wireless technologies. The paper attempts to assess wireless technology migration options using the real options approach (ROA) to support the wireless network operators’ strategic decisions: to migrate or not, if so, which migration path to take. The preliminary result shows that the evolution of wireless network technologies between generations is desirable, but not within generations. Finally, from a strategic perspective, we should consider the possible challenges that may hinder migration. By identifying these challenges, we can be more watchful of transition pitfalls and can choose a better alternative. |
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Keywords: | Real options Technology migration 3G Wireless network |
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