Innovation may be defined as exploiting new ideas leading to the creation of a new product, process or service. It is not just the invention of a new idea that is important, but it is actually “bringing it to market”, putting into practice and exploiting it in a manner that leads to new products, services or systems that add value or improve quality. It possibly involves transformation of technology and restructuring of management. Innovation also means exploring new fields and thinking out-of-the-box to generate new ideas and bring changes to society. (Source:, Innovation)

Innovation can be identified into many types such as

  • Product Innovation:
  • Introduce new product or service into market for commercial purpose.
  • Process Innovation:
  • � Implementation of new or enhance delivery or production method.
  • Supply Chain Innovation:
  • Sourcing of input products from manufactures in the markets and delivery of products to consumers.
  • Marketing Innovation:
  • Introducing new methods of marketing of products with enhancement in design and promotion.

This project work is a study of the innovations undertaken by the “Cellular Phones Service Providers”. The report is an in depth study of the various innovation strategies undertaken by the companies.

Innovation at Cellular Phone Service Providers

In today's world mobiles phones have taken over every part of our society, this took them several decades. In late 1940's, the idea of the cellular phone was introduced and was first used in mobile taxis, police cars and other emergency vehicles. The introduction of hexagonal cells for mobile base station was invented in 1947 by Bell Labs engineers in AT & T. While hand-held devices have been available since 1983, due to low manufacturing cost and innovation of new techniques help in growth of market throughout the world.

Vision of martin Cooper for personal wireless communication comes true, when he made a first call to Cooper's rival at AT&T's Bell Labs from the streets of the New York City.

“People want to talk to other people - not a house, or an office, or a car. Given a choice, people will demand freedom to communicate wherever they are, unfettered by the infamous copper wire. It is that freedom we sought to vividly demonstrate in 1973, “said martin Cooper.

First Generation:

It took more than 40 years to introduce first cellular phones, known as First generation or 1G, to public market in 1983 by Motorola Company which used analog technology. It uses a technology which is supposed to be much less reliable than digital technology that we use now days. The mobile phone used those days where most of a status symbol than a means of convenience. These phones where more expensive and can cost up to hundreds of dollars. Some of the most popular were advanced mobile phone system (AMPS), total access communication systems (TACS) and Nordic mobile telephone (NMT). First Generation mobiles help in market growth from 30 to 50 percent and reaching to 20 million subscribers by 1990. (Source: ,Evolution of Mobile Technology

Second Generation

In early 1990's, Second Generation or 2G mobiles using GSM technology were introduced, which uses digital modulation for clear voice quality but data service was limited. With increase in demand, the 2G developers start working on improving and enable better service of sound quality and coverage area. Other services such as paging, text, voicemail, WAP and faxing were introduced as additional services. Later advanced version of 2.5G was introduced, which was GRPS enabled. It helps in exchange of data in much faster rate as the data's are send in form of small packets. The importance for GPRS increased with the rise of internet, but it too has some security and delay issues.

Third Generation:

With the launch of the 3G mobiles a new range of services was introduced such as audio, video, games and graphics applications. These services have helped to increase the sales and the popularity in very short span of time. Many of the users prefer to use the “text” other than call them. Main objective to launch the 3G mobiles was the speed; it can transfer the data with the speed up to 2Mpbs. 3G open the new way to vast range of Internet applications and support both packet data transmission and circuit data transmission. It allows the user to access Internet while roaming

Forth Generation:

Finally 4G is under development because of the limited bandwidth of the 3G and also to provide much higher data transmission rate of 20Mpbs. 4G will enable the function of 3D, virtual personal videos and to provide bandwidth in all location.

Generation Overview

The whole technology was divided in terms of design, implmentaton, services, standards and data bandwidth. These different areas are very well discuss in below figure.

Why Innovation takes place?

In order to explain the above question we need to answer some of the following questions, which explains the need of innovation in the area.

i. Why are these standards being improved?

  • Higher demands of application
  • Comparison with fixed networks

ii. Limiting Factors

  • Available Data bandwidth
  • Speed
  • Applications used

iii. Where is it going?

  • In near future mobile internet may replace fixed internet

More bandwidth, more possibilities :

As the standard of service goes up , there is alwys increase in possibilities. We all now that 2G technologies made it possible to send short text messages. 2.5G technology with higher bandwidth, making it possible to send and recieve picture, audio or video messages. WAP Also, it made WAP possible, WAP was the first form of internet on the mobile phones. Internet pages are easily converted to suit mobiles phones because of the available bandwidth, phone speed and the size. Web page could only be visied if it is also available in WAP, conversion is done by WAP.#g provide the required internet speed. With nearly equal to 2mbps, is very close to landline broadband internet speeds. In additional to these applications, videocalling and file downloading are possible, internet does not have to be converted anymore. With the launch of 4G technology, with it's very possibility of viewing High Definition TV while being mobile. More bandwidth, more possibilities

Higher Demands of Applicationsi.New Applications

  • Add more functionality to a device

ii.Increase in Bandwidth usage

  • Is this an innovation driver?
  • Few applications use the available bandwidth
  • Not enough users of an application
  • Phone performance

What is driving the innovation of these mobile communication standards?

New applications add more functionality to a device, but in the same time they increase the bandwidth usage. In 2G mobile internet was possible but with low speed and the pages that need converting. As a result of this there was a need of higher speed and so came 3G. As 3G technology was embedded with high speed, it was more difficult for telecom service providers to come up with a good application, an application the user will use, to use the available bandwidth. Only few applications in market are available that uses the bandwidth, total capacity of the 3G is far from being used. Now that high speeds are available, we saw that not all phones can handle the high speeds because they are not fast enough.

With 3G, the internet on mobile phones is fast enough. But why is it still developing?

There is always a comparison of the mobile network with the fixed network. That can explain the further development of the 3G network and the concepts about the 4G network. Although mobile internet is fast enough for mobile phones, but not as fast as a wired internet connection. There is always a gap between fixed and mobile line. Now a days the gap has become a lot smaller. They recently launched a 3G broadband modem for the pc and laptop. This service has a competitive price and as mentioned before, the speed of the 3G network is fast enough for internet usage.

Applications in future

  • Bandwidth is increasing at a high rate
  • Mobile devices will also be faster in the future
  • ‘Speed Gap' becomming even more smaller


Studies have confirmed that all businesses want to be more innovative. Now a days most of businesses believe that innovation is a priority for them. The conclusion is that the importance of innovation is increasing, and increasing significantly. In the current day economic scenario, innovativeness has become a major factor in influencing strategic planning and growth.

Source: ChinaStones -

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