The increasing demands for high-quality multimedia services have challenged the wireless industry to rapidly develop wireless network architecture and technologies. These demands have led wireless service providers to struggle with the current network migration dilemma of how to best deliver high-quality multimedia services. Currently, there are many alternative wireless network technologies, such as TDMA, GSM, GPRS, EDGE, WCDMA, cdma2000, etc. These wireless technology choices require close examination when making strategic decisions involving network evolution.This study assesses the technology options for wireless networks to establish next generation networks (i.e., 3G), based on the real options approach (ROA), and discusses wireless network operators¡¯ technology migration strategies. The goal of this study is to develop a theoretical framework for wireless network operators to support their strategic decision-making process when considering technology choices. The study begins by tracing the evolution of technologies in wireless networks to place them in the proper context, and continues by developing the strategic technology option model (STOM) using ROA as an assessment tool. Finally, STOM is applied to the world and US wireless industries for the formulation of technology migration strategies. Consequently, this study will help wireless network service providers make strategic decisions when upgrading or migrating towards the next generation network architecture by showing the possible network migration paths and their relative value. Through this study, network operators can begin to think in terms of the available network options and to maximize overall gain in networks. Since the migration issues concerning the next generation wireless network architecture and technologies remain the subject of debate, with no substantial implementation in progress now, this study will help the industry to decide where best to focus its efforts and can be expanded for further research.
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