An overview of Telecommunication Industry:

This paper is I will be discussing about internal and external environment thats
impact telecommunication industry which is mainly referred as PEST analysis. Recent
trends, patterns and consistencies will be discussed in detail. There are so many
researches done on the telecommunication about the empirical evidence of literature. The
infrastructure is high lightly the main driver of todays communication industry. The
more firm in the economy will lead to the bigger infrastructure and less competition in
firm. There are many numerous ways of suggesting a greater market structure of an
perfect contribution of growth in economy. The R &D development in infrastructure
plays a vital and significant role for the economy. It determine the efficiency and market
power of the firm. The telecom industry started changing the market structure since 1996,
it had completely changed the infrastructure of US economy and now its changing the
main aspects of China and India. The paper is also based on the analysis of market
structure for telecommunication for new emerging markets from different social welfare
of the society. This papers also suggest the policies that how they can bring more
improvement and changes in equilibrium of the economies. And also considered for
being implemented in overall economy.
Pest Analysis:
Pest analysis is based on the macro environment (external environment). It is the
abbreviation of Political, Economic, Social, Technological factors that has created the
external environment. Such external factors are beyond the control of organization.
Sometimes these factors become threat for organizations.

Political Analysis:
These are the factors which are not in firms control but it is directly in the control of
political party and local government.
Threats:
Political instability:
The political instability is one the major and great and great threat for the
telecommunication firm. This is threat because politics is unpredictable. Anything can
happen anytime. Even government can also change the policies of the operation.
Martial Law Risk:
If you belong to the country where there is high political instability and the ruler is a
dictator so martial law in such countries is always a threat to telecom industry.
Terrorism:
This is a major crucial factor which is faced in many countries these days and its a
growing hurdle in telecommunication way.
Price Regulations:
In volatile economy and high inflation rate, telecom industry has always been the
target of price regulations when everything is going perfect.
Economic Analysis:

Economics institution is are directly controlled by the state bank of the country. It
gives the economic financial aid and soundness for surviving when there is crisis in
economy.
Conditions that are influenced by the government:
There are some government conditions which are imposed by the government on
different sectors and this cant be denied. It is influenced by different policies imposed by
government.
Economic condition of the country is not very good:
The economic conditions of the any country arent good because of the high inflation
rate which is increasing day by day. And because of the inflation, currency value is
also declining with the high rate, which is one of the major threats for telecom
industry because they have to pay off them liabilities.
Financial market efficiency:
In some countries financial institutions are influenced by the government instead of
state bank of the country. It works in this way that rate of interest increases day by day.
And also imposes more taxes.
Social Analysis:
Social analysis is mainly attached to the people and the culture of their work.
How to people overcome threats. How they follow social norms of the firm they follow.

How the people are integrated with one another with the help of social networks. What
makes them more social?
Uneducated people:
Low or uneducated people could not convey the message properly which creates
communication barrier and misunderstanding between employees.
Cultural Norms:
These companies are coming up with their own ethical guidance and code of
conduct in organization. And are trying to bring positive change in the society.

Technological Analysis:
Technology is one of the most essential part of doing any business. Technological
involvement is pretty much high in telecommunication sector because of its high
equipment nature. It brings new renovation and advancement in any sector. And
modernized the world. In todays world technology is changing the behavior and attitude
of the people by providing them greater opportunities in future. Technological
advancement has also decreased the cost of production and has offered people with lower
rates. Modern technology is cost effective.
Todays world technology is improving they are coming up with latest
communication way. For instance, introduction of CDMA, 3G, 4G and LTE technology.

These days telecommunication companies are more coverage orientated rather than
focusing quality.
Trends in telecommunication industry:
This paper is mainly focused on telecom operators of industry. Telecommunication
has basically transmission signals in different ways of communication for significantly
over many years. Telecom industry is getting broader day by day as compare to its past.
Telecommunication basically is based on cultural, social impact on the society towards
modernization. Back in 2008, telecommunication revenue was at $3.86 trillion or you
may say it was 3 % of the entire GDP of the world (Plunket research ltd, 2011). The
telecom industry is one of the worlds most rapid and fastest growing industries of all
time regardless of indicators Wauschkun (2002).
Telecom industry is pretty much new as compare to Asian countries like India and
China as compare to western world. As a result telecommunication industry is a high
profit generator so in both of the countries it was started by the government. And
government has involvement in it. On the other hand now days it is being privatized
because of failure in government control now telecommunication is open widely for
domestic use. License to bring new entities has done exist to the monopoly competition.
Scope of Telecommunication:
In the emerging market of the telecommunication there is a significant high lead of the
multinational firm that was formed in the booming of this industry where as new ones are
still far behind with low performance and low segmentation in markets. As a result

economy is developing on daily basis competitors and customers are getting highly
involved (Thomas and Pankaj, 2007). Developing countries are filling up with the
telecom companies and they can be the multinationals, by presenting themselves in
external bases.
Important Factors:
Operator Performance:
Ravi Shankar and Mitra Debnath (2008) discuss the main methodology that how they
can benchmark there performance of service providers in order to create a globally loyal
base of their customers and how they can retain it back, how they can improve their
customer services, which is one of the important factors that influences the revenue of the
firm and become the important factor to differentiate it from other firms.
Market Liberation:
Michael Ward and Zheng Shillin (2012) has demonstrated the effects of the market
privatization and liberation on different economies of the world specially Chinese and
Indian. China has taken great privatization of the firms and India has also began to
privatize its telecom sector for better customer services and quality service. It also
reduces operator cost.
Policy issues and Regulations:
In countries like United States of America, the telecommunications policies are made
in a framework which is directed by the law of regulatory government or commissions.

Mostly it is done by the Federal communications commission in America. The federal

communication commission use it resources in a best way. So in India they have
developed the hub of all telecommunications and introduced more innovation and global
technological infrastructure to their telecom industry. On the other hand China has
brought many reforms to their telecom sector and its like an eastern miracles in Asia
because they have extensive properties of comparative advantage in intensive goods or
services (Lin Shui. 1998).
Future of Telecom Industry:
Telecommunication has become an important way of living and part of our life and
has created a great foundation; it will continue to innovate the industry. The primary
technology that is enabled to us is our foundation (Research Council, 2008). But its not
always that everything that glitters doesnt meant that they are gold.
For instance of the emerging of new markets in has faced the great number of
challenges as tough level competition and lack of new talent. So in order to take a look at
new growth faced by the youth this is not observed from many years from now. (Yen,
2009).
Conclusion:
As obvious that in todays world the telecom industry is at boom. It is one of the
biggest contributes to the economic growth of one country, either it is developing or
developed. Apart from the contribution terms, telecommunication has also influenced the

growth of many different factors such as Education, Health, E-Governance, Development

etc in many ways.
There is no word like just one best solution but this industry is in a continuous change
and the rapid growth by innovation. Now the government is more focused in bringing
telecom coverage to the rural areas where they are establishing and removing
communication barriers. On the main forum it can be said that telecommunication
industry has played a significant vital role in changing the economic infrastructure of the
country. The more firm in the economy will lead to the bigger infrastructure and less
competition in firm. There are many numerous ways of suggesting a greater market
structure of an perfect contribution of growth in economy. The R &D development in
infrastructure plays a vital and significant role for the economy. It determines the
efficiency and market power of the firm. The telecom industry started changing the
market structure since 1996, it had completely changed the infrastructure of US economy
and now its changing the main aspects of China and India. The paper is also based on the
analysis of market structure for telecommunication for new emerging markets from
different social welfare of the society. This papers also suggest the policies that how they
can bring more improvement and changes in equilibrium of the economies. And also
considered for being implemented in overall economy. This paper is focused about
analyzing and understanding different factors that are involved in revenue for the
telecommunication industry. Indian telecom sector is one of the biggest telecom sectors
across the globe which has shown a lot of significance for competitive for nations.

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