Tuesday, April 10, 2012

Disruptive Technology: Verizon Wireless

Verizon Wireless(VZW) in early 2010 announced it will allow its subscribers to use Skype application over its 3G network through compatible technology. Although ATT had Iphone which was already made compatible with Skype, it didn't allow access to Skype over its network. VZW soon realized the importance of this free call app and made the first move. This helped VZW to gain upper hand in the market as it realized the importance of disruptive technology. Although Skype would reduce the number calls over its network, it was able to increase the data subscription and sale of smart phones. This move in return increased revenue for VZW.

Subscribers valued this over the Iphone that ATT was offering and retained their subscription with Verizon. ATT soon realized this and made the necessary changes to allow skype over its network. But by then it was too late and the disruptive technology had harmed ATT. On the other had it brought fruitful results for VZW.