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Telecommunications Industry Environment Analysis

2477 words - 10 pages

To: Harold W. Bashor
Professor MBA, International Business Management
Franklin University
From: Imran Ali Mohammed
Subject: Telecommunications Industry Environment Analysis
Date: April 5, 2014

Business Brief

Telecommunication is basically any communication over a distance, either via telephone, wireless network, computer network, radio or other means-but conventionally it has been used for telephone service. One of the most advanced forms of telecommunication has been the Wireless Telecommunication; where the information flows between two or more points that are not connected via an electrical conductor. The emergence of wireless telecommunications has made communications across continents almost instantaneous; which seemed practically impossible just a few decades ago.

Orientation to the Telecommunications Industry

Out of all the telecommunications options available, the mobile phone, also known as a cellular phone has been the most popular, with more than 4.6 billion mobile cellular subscriptions all over the world as of the end of 2012. According to the estimates from industry group CTIA - The Wireless Association; the wireless penetration in America has been steadily rising since its introduction and was approximately 104.0% by the end of October 2013. Marked by exponential growth in demand for wireless services and consolidation of the economy, wireless telecommunication services haven, stirred up the telephone industry.

The breakthrough in the modern Telecommunication Industry, i.e., Wireless Telecom providers occurred in the early 1980’s with the emergence of companies like AT&T in the USA. With this, the long distance market was open for business expansion almost immediately, but the traditional companies which operated the plain old telephone service (wire line telephone service) tried very hard to prevent these companies from entering the market. However, with the implementation of “Telecommunications Act of 1996”, the local phone markets were deregulated partly, making telecommunications services more competitive; hence benefiting the consumers. While the research shows that the postpaid subscriber penetration has slowed down over the years, but the overall growth in the industry will continue, due to connected devices like gaming devices and e-readers, as well as ever evolving internet services like 4G networks and cheaper plan options.

Trends, Patterns and Consistencies among key Environments

For any business industry to prosper, it has to take into consideration the Business Environments in which it wants to operate. Business Environment is essentially a combination of external and internal factors that influence a company’s operating situation. The business environment includes factors such as suppliers and clients; laws and government activities; its competitors and owners; and market, social and economic trends. The external environment is also referred to as-The PEST (Political, Economic, Social and...

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