Unique characteristics of the phone operator compared to traditional manufacturing sectors Many of the fundamental characteristics differ between manufacturing and services. These include the following: * Ability to develop and protect proprietary technologies: Imitation is simpler for a phone operator; manufacturing process/system patents are more difficult to obtain and protect. * Incremental nature of innovation versus discrete technology transition: Because of competitive pressures and the relatively low cost of modifying service provision (compared to changes to …showed first 75 words of 1048 total…

…showed last 75 words of 1048 total…foray into 3G services, Xfera has to invest in developing in-house capabilities or partner with content providers to develop innovative products and services (applications) that will stimulate churn. * Their basic strategy should be geared towards forming alliances with market leaders and technology providers to strengthen their position as newcomer in the Spanish market. * Building a recognized brand name with the aim to sell it in the near future could also represent an option for them.