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.
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 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. Advancements and innovations are being made in all sectors of the telecommunications industry, wireless technology, internet, and satellite communications being the forerunners. So are changing the needs, demands, and expectations of global consumers and industry needs to keep pace by creating products and services meeting these demands. Satellites and optical fibers, among other technologies, contribute significantly to the globalization of telecommunications services.
Deregulation has changed the telecommunications industry by transforming local and long-distance monopolies into highly competitive suppliers of communications offerings. The Telecommunications Act of 1996 in the United States coincided with decreased regulations in countries around the world. The Telecommunications Act removed regulatory barriers to entry, opening up the market to new competitors. Deregulation led to a large number of new companies entering the market, which in turn, led to increased competition. Cable and Internet companies began offering telephone service while traditional fixed-line providers began offering Internet and television services.
The telecommunications industry has been among the best performing industries in the world in recent years. Telecom companies face a unique set of challenges that stem from technology trends and customer demands. The convergence of applications, networks, or content in this new-age information superhighway has become the next path-breaking move in core mass-market technology providing single connectivity and integrated user experience.
In the modern world, you can compare the Telecommunications Industry to be of some significance as the central nervous system has with respect to the human body. The Telecom industry is made up of a complex set of sectors and subsectors and has a variety of stakeholders. The Telecom industry builds, maintains, and operates telecommunication networks which enable one of the most essential services to humans and organizations globally, the ability to communicate intra and cross borders.
This section on Telecom Sector is designed to help learners have an overview and understand key concepts, terminology and glossary, issues and challenges, associated with the telecommunications industry, and what strategies get employed to meet some of those challenges. We will discuss the main sectors of the Telecommunications Industry and will focus on some of its critical business drivers. We will also understand the key aspects of the industry’s business model, its competitive environment, and the current trends.