Smart for whom? Cost ambiguity as corporate strategy in the 21st century telco sector

Abstract

Purpose – This paper aims to expose techniques that telco vendors use for maximising revenue from their clients. Although the five-point strategy unearthed was based on the Canadian telco industry, it is interpreted as generic to the digital-age. Design/methodology/approach – Findings are based on focus groups with telco vendors and client perception data. Inductive reasoning is used to generalise findings to other distinctively digital-age industries. Findings – This paper finds five generic techniques that are used within the Canadian telecommunications (telco) industry to ensure that customers cannot control the cost of a smartphone. These techniques are described as an array of telco hybrid offerings, each with its own cost-structure and pricing strategy; the underestimation problem; devices are not geostationary; third-party agreements; and death-by-a-thousand-qualifications. Research limitations/implications – The research develops theory about modularity and platform technologies. Practical implica...