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NEW TECHNOLOGY BENEFITS VERSUS RELATIONAL ASSETS : THE CASE OF THE FAILURE OF INTERNET WIRELESS LOCAL LOOP SERVICE PROVIDERS IN FRANCE

The goal of this paper is to explain the failure of a new technology initially perceived as promising by European and French Telecommunications regulators (Internet Wireless Local Loop), launched by a new entrant against a long established incumbent. We identify a market segment of demanding users that are more sensitive to the benefits provided by this new technology. However, this market segment also appears to be more sensitive to the existing relational assets of the incumbent company, leaving this new entrant with limited market potential. This research uses the results of a market survey conducted by the authors, on the Small and Medium Enterprises Market, which was perceived as the main market target by this new entrant for this new technology.