Contents Contents 1 1. Introduction 3 2. Background 3 2.1 Definition of Mobile Network Provider (MNOs) 3 2.2 Development of the Industry 3 2.2.1 The Second Generation 3 2.2.2 The Third Generation 4 2.2.3 The LTE 4 2.3 Size of the Industry 4 3. Industry Sector 5 3.1 O2 5 3.2 EE 5 3.3 Vodafone 6 4. Analysis of Remote Environment – PEST Analysis 6 4.1 Political 6 4.1.1 Roaming Charges 6 4.1.2 Spectrum Liberalization 7 4.1.3 Data Protection Act 1998 8 4.1.4 Base Stations and Human Health 8 4.2 Economic 8 4.3 Social 9 4.3.1 Increasing Need For Social Network 9 4.3.2 Age Distribution 10 4.3.3 Environmental Issue 11 4.4 Technology 11 4.4.1 Advent of LTE 12 4.4.2 Third Party Content Providers 12 5. Analysis of Operation Environment – Porter’s 5 Forces 12 5.1 Intensity of Competition (High) 13 5.2 Potential of New Entrants into Industry (Low) 14 5.3 Bargaining Power of Suppliers (Low) 15 5.4 Bargaining Power of Customers (High) 16 5.5 Threat of Substitute Products (Moderate) 17 6. Strategies for the Sector 18 6.1 O2 18 6.2 Vodafone 19 6.3 EE 19 7. Conclusion 20 Appendix 20 Reference 21

1. Introduction
This report demonstrates an investigation into the UK mobile network operators industry. Not only this report the external environment examines, but also evaluates the competitive nature of the industry including how the competitive advantages are established, the level of competitive activity and the reason for the competitive activities. Those efforts are aim to ascertain how attractive in terms of competition and profitability the industry is for business. PEST analysis is used for this industry in order to identify and analyze the significant operating factors that affects the industry more critically. The report will take three main parts as