Telecommunications started in the 19th century with the telegraph, and developed through the telephone and radio to TV to satellites and the Internet etc. It continues to change in appearance, structure, boundaries, practices and actors. The telecommunications industry provides a wide range of services such as, fixed telephone services, mobile services, data services (online services, including internet, e-mail, value-added voice mail, voice processing), broadband services (high speed internet, video on demand, home shopping), cable systems, computer network etc. They are all competing and combining into the 'Net'. Despite the fact that the telecommunication industry has dramatic changes today, it is growing and continuing its rapid evolution. With the arrival of broadband, a lot of changes in technologies have taken place in the communications industry. Therefore, telecommunications services keeps evolving with technology, grow in importance and have an impact on modern life.
[...] The telecommunication industry The task: Choose an industry & apply a suitable external analysis model. Critically evaluate the model. Industry chosen: Telecommunications Industry External Analysis model chosen : Porter's 5 forces Words : 2,332 Presentation of the Telecommunication Industry structure Size of the market The future of Telecommunication industry (2010) II) Major Player III) Analyze of Porter's five-forces 1-Threat of New Entrants Power of Suppliers Power of Buyers Availability of Substitutes Competitive Rivalry IV) Critique of Porter's five forces Bibliography Presentation of the Telecommunication Industry structure Telecommunications started in the 19th century with the telegraph and developed through the telephone and radio to TV to satellites and the Internet etc. [...]
[...] In 2006, estimates placed the telecommunication industry's revenue at $ 1.2 trillion or just under of the gross world product (official exchange rate). (Source : ITU) UK telecoms revenues are close to billion in 2005 and Ofcom report that revenues in the overall UK telecoms industry have grown from 39.3 billion in 2001 to 46.6 billion in 2005. Some regulations are about to be released like the EU is proposing regulations to cap mobile charges in a variety of areas, including international ‘roaming' rates. [...]
[...] That is why there is consumer protection. Availability of Substitutes Substitution threats are caused by services and products made by telecom industries that are not traditional. For instance, satellite operators and TV cable are now competing for buyers. Internet is now a way for inexpensive voice calls (program such as Skype, Msn ) and this is a threat to telecom companies' voice revenues. Competitive Rivalry There are a lot of new entrants and because of the new technology they are more substitute services. [...]
[...] Besides, all of the dissimilar media providers will be competing one another to see which can provide customers most reliable, affordable, useful, efficient and fastest services. Although, by 2011, virtually all house, all business and all institution (such as schools, government agencies, and nonprofit organizations) will be online in some way. The global telecoms industry will grow between per year to reach total revenue of $ 2.2 trillion in 2010. I. II. Major Player This list shows the top ten global telecom companies in 2006, ranked by their revenues. [...]
[...] According to the long distance telecommunication industry which include fiber optics provider, hardware suppliers and employees, suppliers have minimal influence. Many of the jobs accessible do not involve extraordinary skills and so most of their labor force can be simply obtained or replaced. Power of Buyers There is an increasing choice of telecom services and products so the bargaining power of buyers is rising too. All data services or telephone prices are not really changing in spite of which companies are selling them. [...]
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