Basic economy of Telecommunication Industry and its operating system
<Overview>
Telecommunication industry has improved with a huge business potentiality and is going to be a booming industry. For example, Phoenix Center research(2009) revealed that “in the coming years, there will be a healthy competition among the providers of telecommunication services. At the same time, the price will be lower and quality will be higher.” Precise statistical data also shows that the telecommunications industry gonna be the most innovative industry in the near 5 years future. And we should know that the telecom industry is building with complex network of services like wireless, mobile, and related market.
<Basic Economy of Telecommunication industry & Making Money Sources>
All over the world, telecom industry is being controlled by private companies instead of government monopolies. It is entering highly-leveled free competition market compared to the other industry. One noticeable thing is that, in these days, According to the article released by economywatch.com(2009), “telecom industry is more concerned with texts and images (Internet technologies), rather than voice(telephone service). Most of the research works are going on Internet accessibility, specifically on data applications and broadband services.” The other major division of telecom industry is mobile network sector, where lots of innovative research works are going on. Previously the traditional telephone calls used to earn the maximum revenues, but these days mobile service is going to replace traditional telephone services.
Telecom industry is a vast and diversified industry and needs a huge capital to invest. That is why the competitors of this industry should be such that they can meet that demand. From the investor's point of view, it can be said that they should be well aware of cash flow in this industry. Preemptive companies already take a dominant territory followed by Verizon, and the other small companies are not easy to enter the market because it requires them to invest remarkable initial investments and compete with giant competitors.
Especially, telecommunication industry is the key force of American economy. U.S. Nowdays, telecommunication industry extends its activities in almost every sector, from education to health care or banking and finance. Telecommunication industry designed to achieve the target of creating more than 212,000 jobs in its domain. Not only creating new job opportunities, but also some other objectives of U.S. telecommunication industry include adding customer value. Once again, as noted in articles from economy watch.com(2009) "by providing them innovative services like VoIP (Voice over Internet Protocol), creating an overall of $58 billion capital investment opportunities and generating $113 billion new revenues in its telecom industry."
Article from economy watch.com(2009), 'U.S. Telecom Industry'
Your comment about the costs for smaller companies to get into the telecom market is a good one. This sheds light onto why railroad companies and companies with pipelines are installing telecommunications plant on their right of ways. With part of the set up costs already paid for, these companies are willing to install telecom plant, so they can cash in on the telecommunications industry.
ReplyDelete