External Analysis of the Telecommunication Industry Essay Example for Free

External Analysis of the Telecommunication Industry Essay Economic †¢ Market analysis by Insight Research predicts that telecommunications-industry revenue will reach $1.2 trillion by the end of next year, and grow by a compounded rate of 5.9 percent to $1.6 trillion by 2010. †¢ Telecommunication remains an important part of the world economy and the telecommunication industrys revenue has been placed at just under 3% of the gross world product. †¢ Mobile phones have had a significant impact on telephone networks. Mobile phone subscriptions now outnumber fixed-line subscriptions in many markets. Sales of mobile phones in 2005 totaled 816. 6 million with that figure being almost equally shared amongst the markets of Asia/Pacific (204 m), Western Europe (164 m), CEMEA (Central Europe, the Middle East and Africa) (153.5 m), North America (148 m) and Latin America (102 m) †¢ In terms of new subscriptions over the five years from 1999, Africa has outpaced other markets with 58.2% growth †¢ Size matters in telecom. It is an expensive business; contenders need to be large enough and produce sufficient cash flow to absorb the costs of expanding networks and services that become obsolete seemingly overnight. Transmission systems need to be replaced as frequently as every two years. Big companies that own extensive networks especially local networks that stretch directly into customers homes and businesses are less reliant on interconnecting with other companies to get calls and data to their final destinations. By contrast, smaller players must pay for interconnect more often to finish the job. For little operators hoping to grow big some day, the financial challenges of keeping up with rapid technological change and depreciation can be monumental. †¢ During the late 1990s, the telecommunications industry experienced very rapid growth and massive investment in transmission capacity. Eventually this caused supply to significantly exceed demand, resulting in much lower prices for transmission capacity. The excess capacity and additional competition led to either declining revenues or slowing revenue growth, which has led to consolidation within the industry, as many companies merged or left the industry. Socio-Cultural †¢ Telecommunication is an important part of many modern societies. Good telecommunication infrastructure is widely acknowledged as important for economic success in the modern world on micro- and macroeconomic scale. †¢ On the microeconomic scale, companies have used telecommunication to help build global empires, this is self-evident in the business of online retailer Amazon.com but even the conventional retailer Wal-Mart has benefited from superior telecommunication infrastructure compared to its competitors. In modern Western society, home owners often use their telephone to organize many home services ranging from pizza deliveries to electricians. Even relatively poor communities have been noted to use telecommunication to their advantage. In Bangladeshs Narshingdi district, isolated villagers use cell phones to speak directly to wholesalers and arrange a better price for their goods. In Cote dIvoire coffee growers share mobile phones to follow hourly variations in cof fee prices and sell at the best price. †¢ On the macroeconomic scale, in 2001, Lars-Hendrik Rà ¶ller and Leonard Waverman suggested a causal link between good telecommunication infrastructure and economic growth. Few dispute the existence of a correlation although some argue it is wrong to view the relationship as causal. †¢ However from any perspective the economic benefits of good telecommunication infrastructure are undeniable and, for this reason, there is increasing worry about the digital divide. A 2003 survey by the International Telecommunication Union (ITU) revealed that roughly one-third of countries have less than 1 mobile subscription for every 20 people and one-third of countries have less than 1 fixed line subscription for every 20 people. In terms of Internet access, roughly half of countries have less than 1 in 20 people with Internet access. †¢ The September 11 attack reinforces the need for robust, interconnected networks that have a high probability of survival in the event of natural or man-made disaster. That argues for a consolidated base of carriers operating with agreed-upon disaster protocols Technological †¢ The largest sector of the telecommunications industry continues to be made up of wired telecommunications carriers. Establishments in this sector mainly provide telephone service via wires and cables that connect customers’ premises to central offices maintained by telecommunications companies. The central offices contain switching equipment that routes content to its final destination or to another switching center that determines the most efficient route for the content to take. While voice used to be the main type of data transmitted over the wires, wired telecommunications service now includes the transmission of all types of graphic, video, and electronic data mainly over the Internet. †¢ These new services have been made possible through the use of digital technologies that provide much more efficient use of the telecommunications networks. One major technology breaks digital signals into packets during transmission. Networks of computerized switching equipment, called packet switched networks, route the packets. Packets may take separate paths to their destination and may share the paths with packets from other users. At the destination, the packets are reassembled, and the transmission is complete. Because packet switching considers alternate routes, and allows multiple transmissions to share the same route, it results in a more efficient use of telecommunications capacity as packets are routed along less congested routes. †¢ One way wired carriers are expanding their bandwidth is by replacing copper wires with fiber optic cable. Fiber optic cable, which transmits light signals along glass strands, permits faster, higher capacity transmissions than tra ditional copper wire lines. In some areas, carriers are extending fiber optic cable to residential customers, enabling them to offer cable television, video-on-demand, high-speed Internet, and conventional telephone communications over a single line. However, the high cost of extending fiber to homes has slowed deployment. In most areas, wired carriers are instead leveraging existing copper lines that connect most residential customers with a central office, to provide digital subscriber lines (DSL) Internet service. Technologies in development will further boost the speeds available through a DSL connection. †¢ Wireless telecommunications carriers, many of which are subsidiaries of the wired carriers, transmit voice, graphics, data, and Internet access through the transmission of signals over networks of radio towers. The signal is transmitted through an antenna into the wire line network. Other wireless services include beeper and paging services. Because wireless devices require no wire line connection, they are popular with customers who need to communicate as they travel residents of areas with inadequate wire line service, and those who simply desire the convenience of portable communications. Increasing numbers of con sumers are choosing to replace their home landlines with wireless phones. †¢ Wireless telecommunications carriers are deploying several new technologies to allow faster data transmission and better Internet access that should make them competitive with wire line carriers. One technology is called third generation (3G) wireless access. With this technology, wireless carriers plan to sell music, videos, and other exclusive content that can be downloaded and played on phones designed for 3G technologies. Wireless carriers are developing the next generation of technologies that will surpass 3G with even faster data transmission. Another technology is called â€Å"fixed wireless service,† which involves connecting the telephone and/or Internet wiring system in a home or business to an antenna, instead of a telephone line. The replacement of landlines with cellular service should become increasingly common because advances in wireless systems will provide data transmission speeds comparable to broadband landline systems. †¢ Changes in technology and regulation now allow cable television providers to compete directly with telephone companies. An important change has been the rapid increase in two-way communications capacity. Conventional pay television services provided communications only from the distributor to the customer. These services could not provide effective communications from the customer back to other points in the system, due to signal interference and the limited capacity of conventional cable systems. As cable operators implement new technologies to reduce signal interference and increase the capacity of their distribution systems by installing fiber optic cables and improved data compression, some pay television systems now offer two-way telecommunications services, such as video-on-demand and high-speed Internet access. Cable companies are also increasing their share of the telephone communications market both through their network of conventional phone lines in some areas and their growing ability to use high-speed Internet access to provide VoIP (voice over Internet protocol). †¢ VoIP is sometimes called Internet telephony, because it uses the Internet to transmit phone calls. While conventional phone networks use packet switching to break up a call onto multiple shared lines between central offices, VoIP extends this process to the phone. A VoIP phone will break the conversation into digital packets and transmit those packets over a high-speed Internet connection. Cable companies are using the technology to offer phone services without building a conventional phone network. Wireline providers’ high-speed Internet connections also can be used for VoIP and cellular phones are being developed that use VoIP to make calls using local wireless Internet connections. All of the major sectors of the telecommunications industry are or will increasingly use VoIP. Demographic †¢ The telecommunications industry offers steady, year-round employment. Overtime sometimes is required, especially during emergencies such as floods or hurricanes when employees may need to report to work with little notice. †¢ Installation, maintenance, and repair occupations account for 1 in 4 telecommunications jobs. Telecommunications line installers and repairers, one of the largest occupations, work in a variety of places, both indoors and outdoors, and in all kinds of weather. Their work involves lifting, climbing, reaching, stooping, crouching, and crawling. They must work in high places such as rooftops and telephone poles, or below ground when working with buried lines. Their jobs bring them into proximity with electrical wires and circuits, so they must take precautions to avoid shocks. These workers must wear safety equipment when entering manholes, and test for the presence of gas before going underground. Telecommunications equipment installers and repairers, except line installers, generally work indoors—most often in a telecommunication company’s central office or a customer’s place of business. They may have to stand for long periods; climb ladders; and do some reaching, stooping, and light lifting. Adherence to safety precautions is essential to guard against work injuries such as minor burns and electrical shock. †¢ Most communications equipment operators, such as telephone operators, work at video display terminals in pleasant, well-lighted, air-conditioned surroundings. If the worksite is not well designed, however, operators may experience eye strain and back discomfort. The rapid pace of the job and close supervision may cause stress. Some workplaces have introduced innovative practices among their operators to reduce job-related stress. †¢ The number of disabling injuries in telephone communications, the principal sector of the telecommunications industry, has been well below the average for all industries in past years. †¢ The telecommunications industry offers employment in jobs requiring a variety of skills and training. Many jobs require at least a high school diploma or an associate degree in addition to on-the-job training. Other jobs require particular skills that may take several years of experience to learn completely. For some managerial and professional jobs, employers require a college education. †¢ Due to the rapid introduction of new technologies and services, the telecommunications industry is among the most rapidly changing in the economy. This means workers must keep their job skills up to date. From managers to communications equipment operators, increased knowledge of both computer hardware and software is of paramount importance. Several major companies and the telecommunications unions have created a Web site that provides free training for employees, enabling them to keep their knowledge current and helping them to advance. Telecommunications industry employers now look for workers with knowledge of and skills in computer programming and software design; voice telephone technology, known as telephony; laser and fiber optic technology; wireless technology; and data compression. Political/Legal †¢ Telecommunications Act: Enacted by the U.S. Congress on February 1, 1996, and signed into law by President Bill Clinton in 1996, the laws main purpose was to stimulate competition in the United States telecom sector. †¢ FCC controls the wireless spectrum allocations among the various broadcasters and service providers. This allocation is through a competitive auction at high cost to service providers, which result in an increase of debt burden of these companies, eventually trickling down to consumers. †¢ FCC as a watchdog regulates that there be no monopoly of a single player in the telecom market. Mergers and consolidation among companies is closely watched and evaluated before being allowed Porters 5 Forces Analysis 1. Threat of New Entrants No surprise, in the capital-intensive telecom industry the biggest barrier-to-entry is access to finance. To cover high fixed costs, serious contenders typically require a lot of cash. When capital markets are generous, the threat of competitive entrants escalates. When financing opportunities are less readily available, the pace of entry slows. Meanwhile, ownership of a telecom license can represent a huge barrier to entry. In the US, for instance, fledgling telecom operators must still apply to the Federal Communications Commission to receive regulatory approval and licensing. There is also a finite amount of good radio spectrum that lends itself to mobile voice and data applications. In addition, it is important to remember that solid operating skills and management experience is fairly scarce, making entry even more difficult. 2. Power of Suppliers At first glance, it might look like telecom equipment suppliers have considerable bargaining power over telecom operators. Indeed, without high-tech broadband switching equipment, fiber-optic cables, mobile handsets and billing software, telecom operators would not be able to do the job of transmitting voice and data from place to place. But there are actually a large number of large equipment makers around. Nortel, Lucent, Cisco, Nokia, Alcatel, Ericsson, Tellabs are just a few of the supplier names. There are enough vendors, arguably, to dilute bargaining power. The limited pool of talented managers and engineers, especially those well versed in the latest technologies, places companies in a weak position in terms of hiring and salaries. 3. Power of Buyers With increased choice of telecom products and services, the bargaining power of buyers is rising. Lets face it; telephone and data services do not much vary regardless of which companies are selling them. For the most part, basic services are treated as a commodity. This translates into customers seeking low prices from companies that offer reliable service. At the same time, buyer power can vary somewhat among market segments. Customers can be as small as individual residential users like you or me, or be as big as an ISP like America Online or a large university. While switching costs are relatively low for residential telecom customers, they can get higher for larger business customers, especially those that rely more on customized products and services. 4. Availability of Substitutes Products and services from non-traditional telecom industries pose serious substitution threats. Cable TV and satellite operators now compete for buyers. The cable guys, with their own direct lines into homes, offer broadband Internet services, and satellite links can substitute for high-speed business networking needs. Railways and energy utility companies are laying miles of high-capacity telecom network alongside their own track and pipeline assets. Just as worrying for telecom operators is the Internet: it is becoming a viable vehicle for cut-rate voice calls. Delivered by ISPs not telecom operators Internet telephony could take a big bite out of telecom companies core voice revenues. 5. Competitive Rivalry Competition is cut throat. The wave of industry de-regulation together with the receptive capital markets of the late 1990s paved the way for a rush of new entrants. New technology is prompting a raft of substitute services. Nearly everybody already pays for phone services, so all competitors now must lure customers with lower prices and more exciting services. This tends to drive industry profitability down. In addition to low profits, the telecom industry suffers from high exit barriers, mainly due to its specialized equipment. Networks and billing systems cannot really be used for much else, and their swift obsolescence makes liquidation pretty difficult.

Essay --

Aaron Lee Period 2 AP Literature and Composition Question 3 Essay â€Å"Remember; remember the Fifth of November the Gunpowder Treason and plot. I know of no reason why the Gunpowder Treason should ever be forgot.† This quote from the novel V for Vendetta is based a dystopian story based in London, and the author wants the readers to know that there is an issue that needs to be fixed or else it will end the world in turmoil. Yet another writer who successfully wrote a dystopian novel to warn humanity of is George Orwell, in his book 1984. Orwell warns his readers of the dangers of totalitarianism and that if we allow the government to interfere and take over our lives we will live in a dystopian; where people cannot think for themselves. The dystopian world that Orwell creates through imagery, irony and satire, warns that totalitarianism may soon exist in the United States. Orwell’s dystopian world in 1984 shows the possibility of a terrifying future of the real world if it succumbs to totalitarianism. 1984 was written during the Cold War, a time of major tension and crisis between two super powers, the United States and the Soviet Union, and the setting from 1984 displayed that the threat was real. The book was written to show that the government could take control of our lives and become like Big Brother; who always follows your every moves, controls every action, and brainwashes you that the Big Brother is good. George Orwell was warning against the actions the government was taking during the early Cold War Era. The imagery Orwell uses is clear when he describes Oceania under a totalitarian regime,† the elevator is broken and always has been, there aren’t any colors in the city, it is an unpleasant world to live ... ...people, further Orwell is warning us of this lie. Maybe Orwell wants us to be vigilant and possibly question our departments of our government? Further Orwell uses irony and satire in 1984 is â€Å"Nothing is your own except the few cubic centimetres inside your skull.† Here Orwell uses satire to emphasize and exaggerate that under a totalitarian government people own nothing and can’t do anything at their own will, no one can think for themselves because it’s a crime. Through 1984, Orwell warns his readers and audience of the possible totalitarianism that may evolve into the government like the dystopian world, Oceania. Through his use of imagery, irony, and satire, George Orwell successfully demonstrates his fear of a world under a totalitarian government and warns his readers through his rhetorical techniques that it may soon occur in the United States.

The Zodiac Killer

The Zodiac was very real villain, and no this villain does not have a giant evil lair or an army of henchmen. What he does have is a psychopathic and insane mind filled with twisted ideas as well as a bit of genius. This villain is the Zodiac Killer one of Americas most infamous serial killers. The Zodiac was active between the sass's and sass's, in this time he took 37 victims in total but the the police only counted seven as definite victims.The Zodiac is like a typical cliche horror movie villain but before the Lech, this mysterious criminal was clever and quick. For years he taunted the police and media, what set him apart from the average day to day serial master mind were his letters. He sent a total of eighteen letters throughout his career If you can call It that, to newspapers mostly though some to private citizens. HIS letters and cryptic messages would always begin with ‘Dear Editor this Is the Zodiac speaking. ‘ He would demand for the letters to be published threatening to go on murderous rampages If they weren't.Way back in 1966 before anyone had ever heard of the Zodiac an 18 year old student named Cheerier Joy Bates was found brutally murdered near the Riverside City College's library complex. After disabling her car the believed to be Zodiac approached her asking if she needed a ride home home. The police determined the Zodiac must have had a personal connection with her as she was comfortable having a conversation and accepted the ride. Zodiac recorded this event in a letter titled ‘the confession' and sent it to the Riverside Police and the colleges newspaper.This was the first of many letters and confessions to come. In 1969 the Zodiac story had exploded into news, however the police only began to consider Zodiac as the culprit in 1970 after a meeting between two investigators. After this event there came more murders the police never really being able to pin point a culprit though Zodiac was always a suspicion they never h ad enough evidence to prove it was him guilty. The death of three young couples had left the police dumbfounded. After the murder of another young couple the police received a phone call from a telephone box.A voice spoke with no accent and was clear and even as if reading Off script, the voice reported a double murder as well as telling the police the location he added a confession of murdering the year before. This continued from 1966 till the early ox's. With no absolute evidence and forensic technology not being advanced enough the police could never pinpoint the killer so his Identity remains a mystery. Although there were a number of suspects and many people believe they know the Identity of the zodiac. Cliche, this mysterious criminal was clever and quick.For years he taunted the police is letters. He sent a total of eighteen letters throughout his career if you can call it that, to newspapers mostly though some to private citizens. His letters and cryptic messages would alwa ys begin with ‘Dear Editor this is the Zodiac speaking. ‘ He would demand for the letters to be published threatening to go on murderous rampages if even as if reading off a script, the voice reported a double murder as well as telling his identity remains a mystery. Although there were a number of suspects and many people believe they know the identity of the zodiac.

Industrial Revolution and Contributions Essay - 909 Words

3. Discuss the causes of the Industrial Revolution from 1865-1895. Be specific in explaining how each point you make affected the economy. There were many factors that contributed to the industrial revolution. Money were popping up from a variety of different sources so business’ can expand, mining added silver and gold to bank reserves, investments from profits helped to stimulate the economy, and small investors started to invest in stocks because they thought it would help them get rich quicker Inventions played a key fact because there were new technology, and science that added to the industrial revolution. Issaic Singer patented the sewing machine and revolutionized textile. The Typewriter invented by Christopher Sholes,†¦show more content†¦Railroads stimulated other industries like steel, consuming  ¾Ã¢â‚¬â„¢s of it. Ships were converted from sail to steam power during the 19th century, which cut the time in half getting across the Atlantic. Cheaper labor, an abundant supply of low paid urban workers helped the industrial revolution, farmers moved into the cities, and hey found additional land hard to get so their income was not expanded. Nearly 20 million immigrants arrived in America and provided cheap labor. They tended to have less money and education than earlier European immigrants so they remained in larger cities and likely became cheap industrial labor. A high natural birth rate also added to the cheap labor supply, the lack of knowledge about birth control, as well as poor uneducated immigrants who didn’t know how to obtain it contributed to increase of birth. The first birth control clinic opened in new york city by Margaret Sanger There were many factors that contributed to the industrial revolution. Money was popping up from a variety of different sources so business’ can expand, mining added silver and gold to bank reserves, investments from profits helped to stimulate the economy, and small investors started to invest in stocks because they thought it would help them get rich quicker Inventions played a key fact because there were new technology, and science that added to the industrial revolution. Issaic Singer invented the sewing machine NO and revolutionizedShow MoreRelatedThe Contributions Of The Industrial Revolution And The Industrial Revolution1422 Words   |  6 Pagesallowing important moments like the suffrage movement to occur and have leverage. During the Industrial Revolution, production became more important than people as factory owners and businessmen rushed to create more and more product. An Enlightened thinker, Karl Marx, would argue that the Industrial Revolution, minimized the i mportance of people and alienated them from those around them. 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