Economic Crisis and its Effect on the Telecom Industry
The worldwide economic crisis that began with the U.S. financial meltdown in 2008 had greatly affected other global markets. It continues to bring a stagnant movement in the economic stability of most industrialized countries. However, the effect of the global recession on the telecom industry is not as damaging compared to other industries because telecommunications has the potential to flourish in spite of the economic turmoil that we are in now. How is this possible?
As technological advancements take place among leading nations the demand for telecom products and service increases and the potential growth of this sector has yet to be realized. Telecom industry can contribute progress in economic growth promoting increased productivity and provide opportunities for expansion.
How the Telecom Industry faces its Challenges
The financial crisis also has an impact in the telecom industry as there will be less available credit from investors to fund infrastructures that provide research and technological advancements in telecommunication products and services. Large high risk proposals that need big investments and costly start ups are likely to be declined financing which can hinder the potential growth of a telecommunication venture. This can be a good opportunity for innovating products and services that are widely used in the market with less capital expenditure.
Innovations towards the future of Telecom Industry
There is an increasing demand for mobile services in developing countries worldwide as globalization continues to become widespread. This occurrence enhances growth for the telecom industry particularly in its mobile services and products. Mobile communication is rapidly becoming a necessity for every individual who constantly needs to be connected wherever he or she may be. Businesses that operate in different locations around the world can also take advantage of telecom services such as VOIP to further cut costs on international calls in line with their business transactions. With the availability of Wifi and WImax it is now easier to connect to the Internet for personal and business transactions through a wireless device such as a laptop or a smartphone. This technology can make communication more efficient as it continues to become widely available to all.
Another innovation in the telecom industry is the technology of smartphones. A smartphone is equipped with functions similar to a laptop aside from its usual capability to make phone calls. This makes communication more efficient with just one gadget. Smatphones can connect to the web through wireless Internet and can send and receive data and video streaming. Various mobile operators and manufacturers of handheld mobile devices such as smartphones are given the opportunity for increased sales as the market increases its demand for these products and services.
Wireless communication continues to be the driving force from the telecom industry sector as more people are becoming dependent on voice and data messaging. With enough research the telecom industry can continue to grow and expand their line of businesses through other products and services that will contribute to market profits and substantial sales.