ecure by the state without the monopoly position. With deregulation, this privileged market position has still left incumbents with protection of their business model based on two factors: Use of the sunk cost of the network as a barrier to entry of others - the cost of infrastructure competition. Ownership of the customer through ownership of the local loop. A third factor is perhaps leveraging of established political position to build resistance to deregulation and the entry of new players with destruction of their market power once they have entered. The most successful example of this has been the resistance to unbundling the local loop, preventing others from "owning the customer", the second factor, while also preserving the first protective factor of complete infrastructure ownership. In analysing the business model, it is useful to look at the business processes and business divisions. The telecommunications operator business process map has several notable features as summarised below. Figure 2.21. Example of major business divisions in a telecommunications operator and the core business processes, some of which may run across several areas (e.g. billing) Marketing Sales New product development Sales campaigns Market research Contracts revenues Campaigns Retail channels and shops Pricing and bundling Retail supply chain Network operations and management Customer services Provisioning and billing Current Network operations Customer care revenues Call data records collection Billing and customer accounts Fault repairs and maintenance Customer information bases New installation Technology Research and Internal business support services IT systems development Strategy and acquisitions Revenue Systems development Procurement support Systems maintenance Accounts R&D and trials Payroll Real estate offices, etc. INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 2. TELECOMS INFRASTRUCTURE TO 2030 These major business divisions are common to most operators. Th