Friday 2 September 2011

Telecommunication Industry India - Complexity


Competition in the telecommunications industry has become very intense and this is forcing some drastic changes in the landscape of the industry worldwide. There are lots of mergers and acquisitions happening around since at the current market situation that is the most suitable way of entering into the market and also to consolidate its position for existing companies. This has made the industry as a truly globalised industry with a high degree of competition level between companies. Thus it can be said that the telecommunications industry is continuously evolving on both technological and economic level. This has made the whole industry more complex. The technological changes occurring in the industry are happening at a very fast rate and the companies have to accept these changes and constantly evolve.
Also, due to so many companies entering the market the economics of every company has become more challenging. This fast evolving technological advancement and economic challenges are actually making the current business situation very complex for the telecommunications industry. Initially the telecommunication industry was only about telephone communications techniques and that to wired one. Afterwards, the focus shifted to mobile telephone communications and now there are various business sectors that are covered by the telecommunication industry such as local and long-distance telephone services, internet facilities, and cable TV systems. The traditional voice communication methods have now taken the backseat and consumers are demanding more of the Internet and wireless services in fact now cable companies are now entering this market and are providing local telephone and Internet services through cable TV systems.
Nowadays mobile phone companies are facilitating Internet services to its customer in order to retain its telephonic customers by providing them something extra. Also they are offering cable TV systems such as IP TV etc in order to combat attrition of its phone customers dropping their landlines connection. Telecommunications service providers are also selling TV via Internet protocol services, competing directly against cable companies. These kind of coupling of inter-sector services are making the relationships between different companies (which were previously not related) more and more complex and in turn it is making the telecommunications business more and more complex to operate.

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