The telecommunication industry has seen significant regulatory reform from the 1990s onwards to the present date. There are major sectors in the industry such as fixed line telephony, television delivery, mobile telephony, fixed wireless access, satellite service, radio and postal sector. I am going to predominantly focus on mobile telephony sector of the industry. Particularly on what were the attractive features of the industry analyzing it by using porter’s five forces which determines the attractiveness of the industry. I will discuss what attracted Meteor into the industry; analyze Meteor strategies entering the market and what factors caused them to alter their strategies and finally how I envisage the telecommunication industry in …show more content…
Eircell saw a gap in the market and launched their service. This turned mobile telecommunication into a mass market product. This helped Eircell to increase their pre-tax profits from £1.6m to £6m in the year to April 1998 and they claimed to have 77% share of the Irish mobile phone market (Independent.ie, 1998). Threat of substitute; substitute of products or services can limit the potential of an industry. The industry will suffer in terms of earnings with numerous substitutes. Products price elasticity’s is affected by substitute products, a close substitute product constrains the ability of firms to increases prices. Considering this, the Irish mobile telecommunication industry in 1998 was an attractive industry to be a part of as it was a duopolistic market, with Eircell and Esat Digifone being the only companies in the industry. Although Meteor was given the third mobile network license but its operation were put to a halt as Orange pursued legal action against Meteor, these proceedings continued until June 2000 (Independent.ie, 1998). In 1998 in mobile telecom industry Eircell substitute was Esat Digifone, initially Eircell introduced pre paid service as mentioned earlier which allowed them to capture majority of the market however Esat fought back by offering similar service but at a lower rate (Independent.ie, 1998).
One month has to look at competition since the early 1990’s, especially since the act 1996 act. The most effective competition has come from technology evolution that enabled multiple platforms with different product-characteristics and economics to compete. They, in turn, then forced each other into cycles of further innovation. When the telecommunications act of 1996 has passed, there were hints of incipient competition in both the long-distance and video-distribution markets as a result of new technology. Local telephony was still essentially a monopoly. Although wireless was thriving, it was seen primarily as a purely mobile service.”
The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies
BT is the leading telecommunication company in Europe. As the information and telecommunication requirements of people increases, British Telecommunication (BT) has a leading corresponding growth in the size and number of information processed. Therefore, the genuine analyses on BT are required for such an important and strategic company.
This report all concerns to identifying and assessing potential segments for BSkyB (Sky) UK telecommunication market. This business organizing operating in UK telecommunication industry is yet to make a mark and achieve a leading position. On the basis of identified market opportunities, it might be suggested to BSkyB (Sky) to concentrate on mobile telecommunications services, which appears a promising market segment, where BSkyB (Sky) huge opportunities to expand its business and so the profitability in order to emerge as a leading player in UK telecommunication industry. It is worth to mention here that UK mobile telecommunications market corresponds to one of the most striking tele-communications markets globally , with the mobile telecommunications services market segment creating
Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone
The dominant economic traits of this industry start with having an enormous amount of capital required for staying competitive. One is also required to spend lots of money on research and development, as the telecommunications industry seems to be the vision of the future. More and more companies like AT&T are trying very hard to combine their network services of phone line, video and data transfer, high speed internet access, and television cable via one line in the consumers homes. With a successful combination of the above stated services AT&T is hoping to be the industry leader in the near future.
The intent of this paper is to perform an analysis of the cable industry's external environment. The first sections of the document will discuss environmental scanning and define the telecommunication niche that is currently occupied by cable operators such as Comcast. The next section will identify the macroeconomic variables that currently impact cable operators and will compare two variables to two corresponding industry variables. The final section of the paper will identify some of the challenges and opportunities
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.
In this part we aim to give a thorough view of Lannet 's external environment in order to understand the particularities and variables of the Greek telecommunications market. In this attempt we have conducted a PEST analysis that helped us get a clear view on the different aspects of the Greek market, a life cycle analysis and a competitors and five forces analysis so as to examine the different factors that affect the Greek telecommunication market.
Creating the mission of “Changing the world of Communication”, SingTel offered a diverse portfolio of products and services including Mio TV, mobile and fixed, and broadband operator to both individual citizens and corporate organizations in their main national operation Singapore and Australia. However, this report concentrates on the mobile communication in Singapore.
Cellular phase remained the very important player with increase in total Teledensity contributive forty eight %. Within the urban markets introduction of Broadband web services by numerous Telecomm giants like PTCL, World decision and Wateen has more benefited the shoppers to access timely data over the web with competitive rates. The broadband penetration but has not represented the maximum amount growth needless to say growing with three.Smn subscribers in a pair of OO7 against 2.4mn subscribers in 2006. PTA estimates broadband subscribers to grow to over Smn by 2010. World decision has initiated cable tv services with PTCL expected to follow suite by providing IP1V services through its baseball play services, guaranteeing diversification of merchandise and services. Recent contributive surroundings give by PTA has resulted in accumulated FDls within the sector with investments of USD2.7 bn throughout the last 5 years creating it the most important recipient of highest FDI throughout the past few years. the longer term for telecom lies amongst unknown rural
The telecommunications industry is divided into four primary categories; mobile telephones, fixed line telephones, internet and broadband and broadcasting. I am going to center this essay on the mobile telephone sector. I will assess the attractiveness of the mobile telecommunication industry in 1980, analyse meteor’s strategy on entering the market and the reasons that caused it to change them. Lastly I will discuss how I imagine the telecommunications industry will evolve over the next 5 years.
This analysis will focus on the smartphone industry given that the global market, in terms of the major players involved and on the dynamics of the smartphone industry and the factors, that affects the change over the conditions of competition.
Just two decades ago, Bangladesh had a barely functional telecommunication infrastructure with the state-owned fixed-line service provider Bangladesh Telegraph and Telephone Board (BTTB) as the only operating telecommunication company in the country. The telecommunication system has experienced unprecedented and phenomenal growth only since 1996, when the first private telecommunication company GrameenPhone was authorized by the government to provide mobile GSM services. Due to expeditious developments in technology, infrastructure, services, and legal framework in the ensuing years, the telecommunication sector has become one of the largest revenue generating sectors in Bangladesh with the annual average revenue of $1780 million- making up to 18%- of total government revenues according to National Board of Revenues (NBR) 1. Notwithstanding numerous challenges- such as volatile political situation- the telecommunication sector was able to attract $1.3 billion investment in the year 2008 compared to $49 million in the year 1999.
Competiitive rivalry within the industry was high. The two firms actively competed with each other in order to gain market share. The service lacked differentiation between the two yet high switching costs prevented them from stealing each others market base. They competed with each other in order to gain more coverage in rural areas and thus increase market share. They also engaged in price competition, with Esat Digifone trying to catch up with the longer established Eircell, particularly around Christmas period. With the launch of the pre paid service in 1998, Esat digifone aimed to provide lower peak rates than Eircell and differentiated themselves by allowing customers receive incoming call for 6 months even if they had run out of credit and not topped-up (Independent.ie, 1998) . Capital costs