Innovation’s dynamics in mobile phone services in France

Abstract

This paper follows recent research about the importance, the variety and the development of innovation in the service industries. We study the innovations which have appeared in the fast growing activity of mobile telecommunication services in France. These innovations have essentially been commercial, affecting tariffs, marketing formulas and the service‐content, including the relationship to customers. Besides, carriers also reconfigured their organization in developing new working tools and innovative partnerships. The emergence and the diffusion of these innovations reveal a systemic and dynamic competitive process. The innovations’ path appears specific to each carrier, although the imitation/innovation logic shapes the competition dynamics which prevail within similar service industries.