In 1995, the market for GSM phones presents a lucrative opportunity, particularly for companies like Ericsson and Nokia, where these devices account for a significant share of their revenue. However, the future holds tighter margins as competition intensifies and the market matures.
This anticipated decline in profitability motivates companies like Ascom to enter the market now, aiming to maximize earnings during this high-revenue period. The barriers to entry are relatively low, with GSM technology and chipsets readily available from specialized suppliers.

Additionally, advances in Computer-Aided Design (CAD) significantly reduce the time required for design and development, enabling quicker access to the market. This strategic approach allows Ascom to capitalize on the booming GSM market before margins erode, making it a critical window of opportunity for new entrants seeking to establish themselves in the telecommunications industry.

Conceptual design study for an Ascom and B&O