Innovation and technological convergence: An assessment of critical resources of telecommunications service providers using Resource Based View and Dynamic Capabilities

Many telecommunications service provider already dispose of the structure to provide convergent services, although they did not reach an increase on sales in accord with market, investors, and customer's expectations. Most of the incumbents is running their businesses based on a few "cash cow" services. The introduction of new telecommunications services seems not to follow the same rate of technological innovations in networks' platforms and end user's devices. This article has focused its analysis in the capabilities and competencies required in a fast change business and technological environment. An alternative strategic analysis was developed using Resource Based View - RBV, Dynamic Capabilities, and Complementary Assets to analyze the innovation strategy of telecommunications service providers TSP in Brazil since deregulation and privatization in the 90s. New technological standards and customers needs require new organizational capabilities and competencies. Under the RBV and Dynamic Capabilities conceptual framework, we examined traditional TSP's business models and organizational boundaries against the new virtual telecommunications service providers - VSP (ex. Skype, MSM, Vanco). The article concludes with a brief discussion of what directions the TSP should take in terms of organization, outsourcing, integrative and collaborative strategies to carry out the benefits of technological advancements to the consumer market.