From virtual operations strategy to building infrastructure: The case of Tele2 in the competitive landscape of telecommunications

Abstract

Purpose

Reviews the latest management development across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Does Tele2's change in strategy from virtual operator to incumbent reflect a sign of the times? As a company focused “on being long on customers and short on infrastructure,” Tele2 seized the opportunity as an early‐mover in the Mobile Virtual Operator Network market at the end of the 1990s and has evolved into “Europe's leading alternative telecoms operator.” Since 2003, however, Tele2 has shown signs of building its own infrastructure. This shift from “virtual operations yield the best margins” to “owning your own infrastructure yields the best margins,” has caused unease among analysts and shareholders.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Citation

(2007), "From virtual operations strategy to building infrastructure: The case of Tele2 in the competitive landscape of telecommunications", Strategic Direction, Vol. 23 No. 11, pp. 23-25. https://doi.org/10.1108/02580540710832924