... and provides telecommunications services to households and businesses in the United States and voice/data services to more than 200 destinations globally. Verizon Wireless is a leader in the industry, Americas first nationwide 3G wireless broadband network, and the nations largest most reliable 4G LTE network (Verizonwireless.com, 2015). Market Structure of Verizon Wireless Verizon Wireless competes in an oligopoly market structure. The oligopoly market consists of few firms, significant barriers to entry, strategic pricing between monopoly and perfect competition, restricted output and the possibility of long-run economic profit (Colander, 2013). The telecommunication service industry consists of a small number of sellers and has high barriers for new entrants. The four leaders of the industry are Verizon, AT&T, Sprint and T-Mobile, combined these firms dominate the market. One of the most important factors that make up the market structure are the barriers that exist. The barriers in the wireless cellular service market exist primarily due to the high costs associated with the infrastructure required to provide reliable wireless service. Another barrier is the limited amount of spectrum (an essential input required to produce cell phone and data services) designated for this type of use (Beard, 2013). Market Structure The four basic market structures are oligopoly, perfect competition, monopoly, and monopolistic competition and each market...
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...Innovation Diffusion in Mobile Communication Industry Introduction The word innovation is derived from the Latin word ‘innovatio’ which means renew or change. Innovation is connected with the renewal or improvement in things, it brings a change in the existing things or brings completely new thing into the market and the consequence of innovation is novelty. Innovation is that idea, practice or object which is perceived as new by an individual of unit of adoption (Rogers 1962). Innovation, first of all influences the thinking process of an individual, when one changes the way he makes a decision or makes choices outside of their norm. When innovation comes it changes the old settings and develops a space for new and better process and establishes a completely better system. Innovation and creativity are somewhere connected with each other; creativity can be described as coming up with new ideas, while innovation is about instilling life to ideas that is actually implementing the ideas. Innovation can be described differently at different levels, like on the lower level it is about changing the way the activities are performed and application of inventions; on the other hand, at the higher levels, it is about complete transformation of the organisation. In context to the organisation, innovation is concerned with positive changes in market shares, efficiency, competitive positioning, and quality productivity and so on and all these forces...
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...Effects of constantly changing nature of digital impacts on the telecommunication industry Problem definition Technological companies have been facing increased activity and this has led to increased customer demands. Customer demands have been changing as compared to the previous years. Another concern for technological companies is that because of booming business there has been increased level of competition in the industry. Various companies are coming up with developed products that have made traditional companies to become obsolete in the market. Due to rapid technological advancements, the numbers of people who are attracted to telecommunication equipment has increased tremendously. This unexpected increase in customer base is a problem for the telecommunication companies this is because this population increase leads to straining of the existing resources within telecommunication companies. These above concerns therefore indicate that the current market environment requires some level of overhaul within the business strategies of most companies within the telecommunications industry. There are various gaps among telecommunication companies and this has resulted in poor industrial performance in the market because of challenges that are associated with change in customer demands, increasing number of customers and heightened competition. There are various opportunities for the telecommunication companies that could be useful in reducing the adverse effects of the stated...
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...ANALYSIS OF MARKET COMPETITION, SWITCHING COSTS AND ITS CONSEQUENCES IN TELECOMMUNICATIONS IN NEPAL NAME: SAROJ POUDEL DEGREE: MASTER OF INFORMATION SYSTEMS/MASTER OF INFORMATION TECHNOLOGY COURSE: 7112ICT RESEARCH METHODS IN INFORMATION TECHNOLOGY INTRODUCTION The economics of switching costs and network effects have achieved a significant amount of popular, as well as professional attention in the last few decades. It is presently defined as the core factor for new Information Technology economy. Switching costs originates, if a consumer demands a product, or its related accessories(hardware or software), of his own purchases to be compatible with each other this creates economies of scope among his purchases from a single supplier. Whereas network effects arise when a user wants his system to be compatible so that s/he can interact or trade with other users, or switch to the same compatible system, which leads to the creation of economies of scope between different incompatible products. Thus these economies of scope impacts the consumer’s buying and switching behavior between various products. The state of lock-in arises when the switching cost is sufficiently high so that the consumer proceeds using the same product rather than switching to the different product. Lock in is the state where the cost of switching exceeds the benefits of switching. Economics of switching costs is the summation of various types of switching costs including: compatibility...
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...Major Field International Finance Advisor Sam Yu Date Janurary 2016 How Institutional Settings matter Tri-networks integration and IPTV Abstracts: This paper will first make a brief introduction on IPTV industry and its present status of development in China. The promotion of IPTV is affected not only by the technology and market demand, but also by the regulatory policy. Policy barriers caused by yield game between telecom operators and State Administration of Radio, Film and Television (SARFT) about profit allocation hindered the development of IPTV. We use the Stackelberg model to analyze the yield game between telecom operators and SARFT. With deep integration between the industry, the traditional regulatory framework should also advance with the times, be replaced by a more flexible integration framework, so as to promote the development of IPTV and other integration of services. However, the pace of development is far below expectations in China. Many experts pointed out that there were few technical problems existing in IPTV, which leaves the main crux to its institutional settings. We will also discuss how institutional settings matter the industry, find out proper regulations to achieve sustainable economic growth by learning from the experiences in other countries. Finally we make the conclusion that in the phase of developing, lax control policy is more favorable for IPTV expanding. Key words: IPTV; telecom...
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...STRATEGIC MANAGEMENT Table of Contents 1.0 Introduction 4 2.0 Macro- environment Analysis 7 3.0 Industry Attractiveness Analysis 16 4.0 Core Competences 22 5.0 Business Strategy 25 6.0 Conclusion 27 1.0 Introduction Lanka Bell is a leading telecommunications operator in Sri Lanka that provides a full range of telecommunication services to businesses and residential customers. With the introduction of the evolutionary low cost CDMA technology, company continues to expand its robust modern digital network that currently specializes in Internet, Data and Voice services. Lanka Bell is an ISO 9001: 2008 Certified Company. Lanka Bell formed in 1997 as the single largest BOI Company in Sri Lanka. With a state of the art digital network & unmatched customer support, Lanka Bell remains firmly rooted in Sri Lanka as a telecommunications giant that continues to challenge the industry through its unparalleled portfolio of services. Lanka Bell supported by a dedicated team of professionals with international expertise & local knowledge and strategic investments in low cost cutting edge technology. Lanka Bell presents an assortment of value added high-speed broadband and voice services at unbeatable rates to its customers, with the new addition of FLAG international optical fiber network. Lanka Bell’s catchphrase is, "Start talking, start saving". Lanka Bell having 3 subsidiaries specialized in different core areas of the ICT & Telco business. 1. Bellvantage...
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...AMERICAN INTERNATIONAL UNIVERSITY - BANGLADESH “An analysis of Factors Influencing the Telecommunication Industry Growth in Bangladesh” A case study of Bangladesh Author: Abdullah Md. Areef AIUB ID: 10-93465-1 Course Instructor: Dr. A. F. M. Masum Rabbani AMERICAN INTERNATIONAL UNIVERSITY - BANGLADESH “An analysis of Factors Influencing the Telecommunication Industry Growth in Bangladesh” A case study of Bangladesh Author: Abdullah Md. Areef AIUB ID: 10-93465-1 Course Instructor: Dr. A. F. M. Masum Rabbani Abstract Not very long ago, mobile were only used by the professional or it was considered as the device of luxury, and user for only voice call, but the scenario has completely changed. Now it’s a necessity of the life. As Bangladesh is a small country with large number of population, it’s an attractive market for business like the mobile operators. Customers of the market do display a strange need for communication through cell phones and are often noted to spend more money on making calls than they do on food. In terms of Social factors, the market is still thriving for more. Customers are still willing to try something new and because of lack of loyalty, customers are always ready for a new operator, hoping that call rates will fall even more which is a threat. The almost exponential growth in the Telecoms sector in Bangladesh in the last 5-10 years has had the same transformative impact on Bangladesh’s economy as the growth of Ready Made Garments...
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...by military and civilian installations amount to nearly $200 billion a year, and include everything from complex space vehicles to janitorial services and cancer research. In short, the government buys just about every category of commodity and service available. By law, federal agencies are required to establish contracting goals, such that 23% of all government buys are intended to go to small businesses. In addition, contract goals are established for women-owned businesses, small disadvantaged businesses, firms located in HUBZones and service disabled veteran-owned businesses. 1. What is the small-business line of business? Wright Telecommunications is a woman owned small-business seeking an opportunity to do business with the federal government. The lines of business for Wright Telecommunications are service, IT solutions, and communication. There is...
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...monopolies. From television stations to computer applications, the effects of monopolies can be felt by consumers across the globe. One of the most prevalent industries to see the rise and fall, and rise again of monopolies is the telecommunications industry. The Telecommunications Deregulation Act of 1996 was passed to break up the monopoly held by AT&T and to promote competition and lower prices benefitting consumers. In less than 20 years, the telecommunications industry stands on the brink of yet another monopolization by the biggest names in the business. Sprint (who purchased Centel and then Nextel) AT&T (who bought former SBC, BellSouth and Cingular) and Verizon are the big players in the telecommunications industry today, not only in the soon to be obsolete land-line business, but also in cellular communication, broadband, and digital media markets providing services such as digital cable television and on-demand movies. What technological condition has caused this? In a word; innovation. Consumer demand for more convenient ways to communicate with one another, cell phones, reliable networks, instant communications, smaller devices providing bigger services…the list goes on and on. We want more, better, faster…oh yeah, and one more thing…we want it to be affordable. In Mark Gimein’s essay in the July 20, 2006, edition of Business Week titled “The Phone Companies Still Don’t Get It: they block competition and charge too much. You call this a communications revolution...
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...PGP/16/083 NISHANTH S PGP/16/096 T DURGALAKSHMI PGP/16/115 ARKAPRABHA DEBNATH PGP/16/133 UMESH KUMAR (GL) PGP/16/174 CONTENTS 1. | Introduction | 3 | 2. | Research Questions | 3 | 3. | Research Methodology | 4 | 4. | Literature Review | 4 | 5. | Conclusion | 14 | 6. | Tables | 15 | | | | | | | Introduction FDI refers to direct investment in business or production in a country by a foreign company. It leads to capital inflows from abroad into the production capacity of an economy, and facilitates international trade and knowledge transfer. It is a source of employment and capital which results in country's development. It improves the foreign exchange, helps transfer new technologies, increases competition, exports and tax revenues. It benefits the recipient country's business in terms of management, revenue generation by following the best practices which are of global standards. The policies related to FDI underwent major change in 1991 as a part of structural adjustment program. Since 1991, gradual liberalization of India's economy has led to more and more FDI into the country. India is gradually opening up sectors for foreign firms to enter with the recent decisions like removing investment caps in sectors like defense, telecom and insurance. There has been constant opposition to FDI on various grounds like protection of indigenous players, unemployment etc. India, one...
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...INTRODUCTION 0.1. BACKGROUND Mobile telecommunications industry has grown exponentially over the last two decades (Kenny and Keremane, 2007). In some countries, the mobile sector has become a critical indicator of economic development. Mobile technology provides a unique opportunity for the developing countries where telephone diffusion has been very low. Specifically, due to its comparatively low investment requirements, mobile telecommunications allows these countries to take advantage of technological innovations to provide communications services in the areas with limited or no telephone network (Noll, 2000; Thompson and Garbacz, 2007). However, the potential of mobile telecommunications has not been fully utilized in many parts of the world. This is evident from its uneven pattern of diffusion, with over 94% penetration rate in Europe in contrast to that of 22% in Africa (ITU, 2007). In the last decade, mobile communication in Ghana has grown rapidly and users benefit from smaller devices and longer lasting accessories. Wider bandwidths are always available from competing firms who task themselves with setting new communication standards within the industry. This has called for a critical attention for mobile telecommunication service providers to utilize a multiplicity of strategies in sustaining current customer base and bringing new ones on board and to make these customers very loyal to the brand. One major tool being used is sales promotion. This communication...
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...Some even refer to China as the mother of emerging markets and transition economies. China joined the World Trade Organization towards the end of 2001. It has also been experiencing a long period of steady economic growth and was chosen to host the 2008 Olympic Games. Although there is still a huge gap between China and developed countries in the development of the ICT industry, the astonishing pace of its progress shows promise for the country’s New Economy. There are empirical evidences in recent years on China’s ICT industry development and diffusion. Indeed, The ICT industry is becoming the most dynamic sector in China’s economy. However, a clear digital divide among the nation’s economic regions is foreseen. Information and communication technologies (ICT) are therefore playing an increasingly central role in today's China. In just a few years, China has become the country in the world offering the most attractive market perspectives for most ICT products and services, thus making ICT a key focus for cooperation between the European Union, China, and other nations. China's domestic ICT industry will be strong over the next five years as China continues to upgrade its telecom infrastructure and in its drive toward global...
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...[pic] 21510 Global Context of Management Autumn 2011 Industry Report Telecommunications Industry in Japan Table of Contents Introduction...............................................................................................................................3 The Japanese Telecommunications Industry – an overview......................................................4 The Beginning of Regulatory Reform and the Role of MIC........................................................5 Rapid World-leading Technology and Trends.........................................................................6-7 The Role of Handsets and Devices............................................................................................7 The Economic Effect of a Natural Disaster.................................................................................7 Environmental Policies...............................................................................................................8 Going Forward...........................................................................................................................8 Appendices...........................................................................................................................9-13 Appendix 1 - Shares of cumulative subscribers at the top four Telecommunications companies in Japan................................
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...Question 1: Elasticity is a very important conception in economics. It is ‘a measure of how much one economic variable—such as the quantity demanded of a product—responds to changes in another economic variable—such as the product’s price’(Hubbard, Garnett, Lewis, and O’brien 2010). There are four different but relevant elasticities—price elasticity of demand, cross-price elasticity of demand, income elasticity of demand and the price elasticity of supply--shall be considered by decision maker of a company (Hubbard, Garnett, Lewis, and O’brien 2010). With good understanding of those elasticities, a company is capable of making a reasonable and adaptable marketing strategy. Price elasticity of demand and the price elasticity of supply reflect the degree of responsiveness of the quantity demand and supply to a change in price, respectively. If the results of those two elasticities are elastic mean that the percentage changed in quantity in demand or supply would be greater than the percentage change in price (Hubbard, Garnett, Lewis, and O’brien 2010). The result of the price elasticity of demand would help the manager or decision maker of a company to set up a price which can make their revenue maximum. It would be a very smart move to decrease price when it can bring greater percentages changed in quantity of sales. In reality, a company even cannot set up a stable price for a product when they are not clear about the price elasticity of demand for that product. When DVDs were...
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...Contents 1. Introduction. 3 2. The importance of trade globally. 4-5 3. Gains from international trade in Canada. • Trade and specialization. 6 • Trade domestic competition. 7-8 • Trade and productivity in Canada. 8-9 • Trade and prosperity in Canada. 9-10 • Trade and wages. 10 4. Internal trade barriers. 11-13 5. Conclusions. 14 6. References. 15 INTRODUCTION Canada has always been a country engaged in trade, although its inhabitants were not very willing to deal with it. Historically, Canada was a very large area, bigger in size in contrast with the number of residents. For this reason, there was always been a need to export the excess products. This situation slowly helped Canada to adopt commercial policy measures and the development of its commercial activity...
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