Group Project On Telecommunication Industry
The telecommunication industry acts as an important sector of the information and communication technology that specifically emphasize on making optimum usage of the internet services. They play a crucial role in making an evaluation of the mobile communication services thereby widening the information society further. This industry solely makes a global revenue from the telecom services thereby reaching to a total estimate of 1.2 trillion Euros as estimated by 2019. The rapid rate at which this industry has been diversifying their operations also has greatly been able to set up their mark in the Asia-pacific region followed by the North America and other European regions. This sector mostly comprise of the several companies that carry out with an effective communication thereby emphasizing on the effective use of the phone and Internet services both by the wire cords or without them. This industry has greatly been able to improve the connectivity within nations using the electrical signals and electromagnetic waves, which help to improve the network system further (Li, Chen, & Dahleh, 2015).
The study further focuses on carrying out a detailed analysis of the telecommunication industry thereby emphasizing on the major impacts it has laid upon the market and US country in particular. Further emphasis is laid on making analysis on the demand and supply concept in relation to the telecommunication industry followed by their cost of reduction and market share for the same.
Analysis of the Telecommunication industry
Telecommunication industry is one of the fastest growing industries in the modernist era as advanced technology and ease in beneficial feature is supporting the economy in the significant manner. Apart from that, telephone calls are considered to be the significant revenue generator of the previous time and that has been replaced with smart and advanced technology. Technology industry mainly involves all telecommunication companies that comprise all the firms and organizations that are to affect the global scale through various means such as internet, phone, and airwaves cables and so on. Telecommunication industry can also be considered as the effective invention of diversity and creativity in supporting the global economy in the significant manner. It have been evident that the telecom industry is supposed to double the global revenue in the coming year that is estimated as 102 million Euros as in 2016 the estimated revenue of this industry was 372 billion Euros (Asimakopoulos & Whalley, 2017). The United state comes in the second position followed by Asia-Pacific region and Europe comes in the third position. In this industry electrical signals, electromagnetic waves and airwaves are used for creating a communication mean or channelizing the communication platforms for various reasons.
United States is one of the significant players of telecommunication industry as significant increase in the business optional and dynamics are being evident in the rapid manner. There lies various renowned telecommunication companies with effective marketing strategies and supporting the economic constraints by fulfilling the demand and supply of the requirements of telecommunication objectives. In essence, AT & T, Verizon Communications, Comcast Corporation, Chartered Communication and T Mobile USA can be considered as the significant telecommunication companies based in the United States and positioned as per the revenue. In accordance with the recent researches, it has been evident that 2017 was a big failure for the Telecommunication Industry for US as due to some certain reasons (Oughton, Frias, Russell, Sicker & Cleevely, 2018). However, there is a sign of improving the revenue ratios in the coming years with effective economic strategies and business systematic. For telecom firms, post customers are more likely to profitable and effective as the customers are billed monthly. However, the wireless operators are witnessing effective and prominent growth in the financial statements with the cutthroat pricing for the data plans and post paid billings. Since, the last year have gone significantly failed, last quarter of the year has introduced new ways to improve the marginal costs and options for the telecom industry. Changes in the political figures and regulatory bodies have introduced tow significant pro-growth agenda for the telecommunication industry (Fan & Xiao, 2015). The focus was emphasized on the reduced corporate tax rate and Net Neutrality Laws proposed by the Federal Communication Commission of US. In influencing the economic parameters, it is important to impose focus on the demand, supply cost of production and market share. Additionally, to deal with the economic parameters hiking dividends can play the most significant role as shareholders wealth can be raised through these practices. Apart from that, growing economy is always plays the role of catalysts to the demand to real time voice data and more (Wang, Lu, Kweh, & Lai, 2014). Thus, valuation indicates the strong upside of metrics that supports and contributes to the economic parameters in the prominent term.
Figure 1: Decline in Traditional wired voice connections
(Source: Dunlop, 2017)
Analysis in terms of:
Demand and Supply
The availability of the telecommunication infrastructure has an adequate quality emphasis on the communication habits since the year of 1990. The physical infrastructure and their quality act as major pre-requisites for obtaining a higher level of service that makes the best use of internet and other offered services including SMS and telephony. The interplay between the demand and supply infrastructure is of central interest in line with the Web 2.0. The customers play a major role in turning themselves from a service user to an information provider’s role. This increases the traffic on the existing lines thereby raising the customer’s demand for a high quality of telecommunication service (Sapolsky, Crane, Neuman & Noam, 2018). The provider of telecommunication services on the other hand also carries certain level of investment risks that are difficult to internalize and often affect the service quality. The politicians also adopt certain initiatives and adequate investment incentives so as to improve this sector and provide mutual help so as to diversify the country’s revenue (Vogel, 2014).
By taking into consideration a two-equation estimation approach, emphasis is laid on the effect of a direct competition that lays emphasis more on the service competition thereby raising the supply of the telecommunication infrastructure. This further tends to have a disentangled emphasis due to an indirect effect. This in turn lays focus on the service competition thereby raising the demand for infrastructure quality (Gillespie & Goddard, 2017). This further tends to increase the supply of the infrastructure services within this sector. The direct investment effect is only partially confirmed which provides a certain evidence to the indirect investment effect thereby emphasizing on both the fix and the mobile infrastructure investments.
Further emphasis is laid on the cross effects that lie between the fix line infrastructure markets and the mobile phone infrastructure markets which further broadens the view points. This in turn tends to raise the indirect own market competition affect which further results in confirming the idea of an asymmetric substitution-ally that lie between the telecommunication infrastructures.
The demand for a high quality of infrastructure increases with the development of a physical infrastructure, which is further determined by their original provider- determined aspects. They further lay focus on the customer-oriented product and service, which allow the providers to regulate and contemplate on raising their fundamental restructuring. To cope up with the issue, focus is laid on taking into account the steps that are adopted by the European Parliament in coordination with the other national governments for installation of a Third Regulatory package. Further focus is laid on adapting the closed form models, which act as standard approaches to explain the impact that is laid down on the service competitions based on the provisions of the telecommunication infrastructure. Further focus is laid on adapting the structural approach, which separates the demand related impact variables from the supply related ones thereby emphasizing on the competition that prevails within. This further helps to take into account the various explanatory variables of standard that emphasis on huge closed form models thereby laying down a major impact upon the supply and demand sides accordingly. It is therefore evident that by emphasizing on the cross effects between the fix and the mobile infrastructure markets, the increase in the mobile prices automatically lead to a lower demand for the mobile infrastructures and a high demand for the fix infrastructural accessibility.
Cost of production
The Telecommunication industry is one of the greatest gifts that have been able to diversify and link the international markets with that of the domestic markets. This has further emphasized on carrying out a corporate communication to personal communication thereby acting as a prime way to maintain a continuous and instantaneous flow of sharing information. When taken from the business perspective of economic activities of the modern world, it is evident that the use of the several communication channels has not only diversify the telecommunication sector but has also laid a greater influence on the economy in terms of the GDP per capita. This further follows increasing a wide range of job opportunities, which further help to widen the investment of the infrastructural development and obtain huge sets of revenue from them. This further tends to raise the GDP rate of the economy thereby emphasizing on the major role of the tele-communication industry in terms of diversifying the world.
It is quite evident that US has greatly been able to strengthen their relationship with the outside world and carry out successful interactions with their potential customers by developing their telecommunication industry. This has in turn greatly helped them in their economic development and growth. This further follows making an analysis of the various variables that relate to the construction of the telecommunication sector and emphasis on the important elements of tele-density, investment within the telecommunication industry, the revenue contribution percentage of GDP, the GDP per capita and the employment rates.
The Telecommunication industry has further adapted to a new pricing innovation strategy that has laid down a major impact on the prices of goods and services within the market thereby increasing the customer demands. They have further followed emphasis on the costing systems within this sector, which has helped to improve the cause and effect relationship. The evaluation of the returns has further been noted to exceed the accompanying costs thereby laying down a broader impact upon the infrastructure and service. This has in turn resulted in innovations and regulation within the industry thereby developing the costing and pricing which further relates to the important functions and products. This in turn has also determined the service specific fixed costs thereby widening the production process further.
As has been documented, US have witnessed significant fall in the telecom industry in the last few months of 2017. It is obvious that downsize in the marketing share of the telecom industry significantly influenced the economic growth and affected the financial constraints in the prominent manner. The demand and supply of the telecom industry have been harmed in the effective aspect. Accumulation of the dark fiber and airwaves are the crucial factors of the telecommunication industry. Apart from that, the fall in the market, ratios have affected the economic constraints in the effective manner and it will be an important aspect to incur the productivity with systematic approaches. The downfall of the marketing shares needs to get hiked to support the economic statements from the global perspectives. In order to increase the market shares again, the US wireless industry have various agendas and strategies to perform in the effective manner. The US industry have the significant approach in 5G networks, various data services as well as plans in the telecommunications so that hike in the local or regional firms of US of the telecommunication. Maintaining the profitability of the companies is necessary as the small business firms have significant contribution to the organizational development. Additionally, the changes in product differentiation, service quality meeting the demands with effectible professional approaches can help in increasing the profitability terms in the effective manner. Apart from that, increasing the products penetration, quality of the services need to maintained through the promotions of the business so that the approaches can be performed in the specific manner. Additionally, the market shares can be increased with effective managing approaches and significant internet of things can be applied. In accordance with the proposed context, it can be stated that it is important to manage the demand and supply curve in the effective manner so that economic constraints can be managed with the effective professional approaches. Market shares are important to maintain the constraints of managing the demand supply and cost of production to ensure the enhancements in the productivity can be evident in the effective manner. A long terms EPS growth of 10.33% was estimated to plan for the expansion of the market share in the future operations. In commercial networks T-Mobile's have the agenda to increase the market share with 22.26%. In addition to that, capitalizing the business opportunities and growing the industry with the marketing share of 10.14% to expanding the business with effective manner. Finally, it can be stated that to ensure the marketing growth of the business and telecom industry it is important to manage the market shares with effective business approaches with effective managerial accounts so that enhancement and growth can be evident in the telecom industry of US. Improving the marketing visions, and project analytics in this regards can be helpful to overcome the downsize that was recently witnessed by the US telecom industry.
Figure 2: Increasing rate for Telecommunication industry in US
(Source: Shepherd, 2015)
The study infers by emphasizing on the concept of telecommunication with special focus on the US market. Emphasis is further followed on making an analysis of their impact upon the demand and supply using several approaches and models to understand better. This is further followed by focus on the cost of production for the services they deliver and how that has affected upon the nation or globally. This is followed by focus on the market share of the country and how the telecommunication industry has determined their increased or decreased with special emphasis on their growth and development.
The study clearly shows how the telecommunication industry has developed over time and the changes in their infrastructure has determined the changing market situations of the country at large further emphasis is laid on the several theories which have helped to understand the impact better thereby using this industry as a base for emphasizing on the growth of revenue and other physical elements. This also signifies the growing importance the use of the internet services and mobile applications thereby widening the global revenue per year. Further focus is laid on the various wireless networks that fall under the computer networking followed by the PSTN (public switched telephone networks). This is followed by a thorough emphasis on both the traditional and modern methods and how they have changed the operations within the business with time.
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Gillespie, A. E., & Goddard, J. B. (2017). Advanced telecommunications and regional economic development. In Managing the city (pp. 84-109). Routledge.
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Vogel, H. L. (2014). Entertainment industry economics: A guide for financial analysis. Cambridge University Press.
Wang, W. K., Lu, W. M., Kweh, Q. L., & Lai, H. W. (2014). Does corporate social responsibility influence the corporate performance of the US telecommunications industry?. Telecommunications Policy, 38(7), 580-591.
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