Telecom Industry & Globalization
The telecommunications sector is an important strategic segment of the modern economy. As globalization set the stage, the telecommunications industry became gradually a more global industry with increasing competition. The first factor shaping the telecommunication industry to what it is today is globalization. The telecommunications industry transports information at such incredible speeds that the concept of the virtual world has become true. This article will discuss the impact of globalization and the risks and opportunities it present to the industry.
The first factor shaping the telecommunication industry to what it is today is globalization. The telecommunications industry transports information at such incredible speeds that the concept of the virtual world has become true. Users can stay connected on a global scale without traveling and can collaborate in a virtual world enabled by the telecommunication industry. Telecommunications has become tremendously important to the successful operation of almost every organization around the world, large or small, in both the public and private sector, and for most of the trans-border organizations, it is the backbone of their business. Discussions of globalization, the Internet, and e-commerce typically emphasize the increasing pace of change happening today.
The traditional distinction between local and long-distance telephone service, as well as the demarcation between voice, record, data, and video services, is fast disappearing. The Internet has reached one-third of the world population. There exist 5 billion wireless subscribers still growing at a fast pace. Comparable changes are taking place on the international scene as the conventional separation between local, national, and global communications are being eroded, and as integrated telecommunications usage readily transcends national boundaries.
International communications are the fastest-growing segment of the total communications industry. It is estimated that global traffic would appear to reflect the same type of usage concentration that exists in domestic long-distance traffic, in which 20 percent of the business customers account for 80 percent of business revenues. Global telecommunications will have a significant impact on the growth rates of both industrialized and developing nations.
Many telecommunications providers have strong incentives to expand operations across nations. By expanding internationally they can exploit core competencies across a larger set of opportunities because the emergence of global network equipment markets and a trend toward deregulation, technical competencies in network operations, and services are now having increased global applicability. Global customers will demand services that are well integrated across national borders in both technical and customer-service dimensions.
Globalization also provides an opportunity to diversify the risk. In addition to general macroeconomic and political risks, communications industry growth rates are likely to vary significantly across countries. Still there exists an opportunity to explore telephony service as telephone penetration rates worldwide are still low compared to some of the countries. Telephony is a well-established service that brings value to customers from many different backgrounds and cultures; there is huge potential for telephony service growth around the globe. To lessen the risks of any particular country achieving its growth potential, businesses linked to telephony service growth can position themselves to exploit growth that might occur in other countries.
Companies who are participating in international commerce have to deal with important cultural differences and also the absence of a common internationally applicable legal framework. Such differences are particularly significant in telecommunications markets because the services exchanged are complex and the regulatory framework is crucial. Globalizing a company is also a means to lessen transaction costs and to facilitate quicker reactions to new business opportunities.
During the last decade "globalization" was more of a slogan than a reality, since it referred mainly to alliances between major operators to provide end-to-end services to multinational enterprises. Public networks and residential customers were relatively unaffected by this kind of globalization. In the current decade, globalization has already become much more of a reality and in future, it is going to be possible for foreign operators to have direct access through interconnection and interoperability to public networks in most of the world's major telecommunication markets, as well as to make direct investments in the development of those networks.
Related Links
You May Also Like
-
Imperatives of Telecommunication Industry
The telecommunications industry continues to grow steadily on a global scale. The most important imperatives shaping the modern telecommunications industry are globalization (worldwide scale), technology (latest advancements), and deregulation. The first factor shaping the telecommunication industry to what it is today is globalization. The second factor influencing the telecommunication industry greatly is technological advances. This article briefly discusses these three imperatives.
-
Telecommunications Industry & Deregulation
The Telecommunications Act removed regulatory barriers to entry, opening up the market to new competitors. Deregulation led to a large number of new players. The third factor having a great influence on the modern telecommunication industry is deregulation. This article will discuss some thoughts on the impact of deregulation and unfettered competition on industry and a brief debate on deregulation versus some new form of regulatory intervention.
-
Overview of the Telecommunications Industry
Modern telecommunications industry players produce communication equipment and deliver a set of voice, data, and broadband services using wireline or wired infrastructure of cables, networks, servers, computers, and satellites. In this article, we will define the telecom industry and discuss some of the key business drivers. Understand the various constituents of the telecommunication services sector followed by a small discussion on current industry trends.
-
Telecommunications Industry Profile
Broadly telecom industry can be divided into two sectors, Equipment Sector and Services Sector. Equipment sector players manufacture telecom products whereas the services sector comprises operators and other service providers. The telecommunications industry equipment sector is comprised of companies that manufacture products that are used by both end-users and input to other telecommunications companies. Customers use these products to access telecommunications services. In this article, we will discuss the industry profile of telecommunications.
-
Telecommunications Industry – Business Drivers
To provide solutions to clients in the Telecom industry, it is critical to have a comprehensive understanding of their business, their objectives, and their challenges – those business challenges unique to their organization as well as those triggered by the industry and marketplace. The following article provides an overview of the key business drivers that are impacting telecom carriers and hardware providers.
-
Debate on Need for Deregulation
There are many arguments in favor of deregulation. Advocates argue that continued regulation can only support the development of static markets whereas deregulation is necessary for the development of dynamic markets. Market convergence and related infrastructure competition are more likely to take place in dynamic markets. In many telecom markets, deregulation is currently being discussed, in this article, we will examine the impact of deregulation on the overall economy and study arguments that are placed in favor and against deregulation.
-
History of Telecommunications Industry
The history of telecommunication began with the use of smoke signals and drums in Africa, the Americas, and parts of Asia. In the 1790s, the first fixed semaphore systems emerged in Europe; however, it was not until the 1830s that electrical telecommunication systems started to appear. Follow this advancement from smoke signals to modern-day internet and mobile technology, understanding the events that have shaped the world of telecommunications.
-
Telecom Industry & Globalization
The telecommunications sector is an important strategic segment of the modern economy. As globalization set the stage, the telecommunications industry became gradually a more global industry with increasing competition. The first factor shaping the telecommunication industry to what it is today is globalization. The telecommunications industry transports information at such incredible speeds that the concept of the virtual world has become true. This article will discuss the impact of globalization and the risks and opportunities it present to the industry.
-
Telecom Industry & Technological Innovations
The second factor influencing the telecommunication industry greatly is technological advances. Technological advances in recent times have dramatically changed the dynamics of players involved in the telecommunications infrastructure, equipment, and services sectors. This article will discuss the impact of technological advances and the risks and opportunities it present to the industry. Shift to 5G, AI, IoT, etc. and adoption of these technologies are current telecom trends.
-
International Telecommunications
The telecommunications industry has been among the best performing industries in the world in recent years. Until the 1980s, the governance and regulation of international telecommunications regulation were relatively straightforward where state-owned telecom companies provided services within discrete national boundaries. International traffic was carried at rates mutually agreed upon by governments and their respective national carriers. A brief discussion of how the industry is shifting to a multilateral trade framework.
