close Visitor Edition

The McKinsey Quarterly is the business journal of McKinsey & Company. Register now for immediate access to hundreds of articles.

Register to read this article

  • Text Size

  • Print

  • Download PDF

  • Link to This

The IT factor in mobile services

Mobile-telecom companies must redraw their IT architecture if they hope to market new services quickly and cheaply.

AUGUST 2003 • Enrico Benni, Klemens Hjartar, and Jürgen Laartz

Boosting revenues in the face of slowing subscriber growth has become a priority for mobile-telecommunications companies in Europe and North America, and to that end they are rolling out any number of new services to consumers. Applications now in the pipeline or already available include everything from fun and exciting products such as games (a big hit with NTT DoCoMo’s i-mode customers in Japan) to convenient concierge services (for instance, applications that help business travelers find restaurants). But in launching these services, mobile operators must solve a swath of strategic and marketing problems—and deal with vexing operational challenges stemming from the structure of the technologies that support the business.

Indeed, in mobile services IT not only supports the business but is also, to a large extent, the business itself: technology lies at the core, from the products and services to the way customers receive them to the operation of every company in the sector. But like companies in so many other sectors, mobile operators have for years installed one IT system after another, and the interconnections between them have become complex and often inefficient. Modifying these complex systems or adding new ones to the mix is more and more...

Free Membership

As a free member you can also:

  • Read hundreds of free articles
  • Receive e-mail newsletters and alerts
  • Search our archive

Simply fill in this form

View our privacy policy.
We will not share your e-mail. See details.

* Required