Telecommunications Competitive Landscape

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Telecommunications Competitive Landscape

Shari M. Binkney

December , 00Cheap custom writing service can write essays on Telecommunications Competitive Landscape

Duquesne University

Introduction

In this paper, I will present the following four topics a summary of the competitive landscape of the telecommunications industry; competition is more or less necessary in the industry; how competition has influenced my business and life; and what leaders should consider when selecting partners from these competitors.

Competitive Landscape Summary

The competitive landscape of the telecommunications industry has become a major race down the information superhighway. With technological advancements creating new and better ways to communicate, competition in the telecommunications industry seems to have become more than just local and long distance services; these services now include voice, data, Internet access, cable TV, and multimedia. Because of this expansion, competition has become a major challenge (Bonocore 4). The emergence of so many providers makes competition possible, but it may not be the fierce competition of firms offering identical services as in long-distance telephony. Each of these technologies is distinctly different, with advantages and disadvantages. Even if there are many providers that could serve a given residence, there may only be one that can provide what that customer wants (Peha). There are too many companies to determine which ones will come out on top, but Bonocore feels that these six companies have a chance, they are AT&T, MCI WorldCom, SBC Communications, Verizon Communications, Deutsche Telekom, and British Telecommunications (4 - 0).

Competition More or Less

Since the AT&T divestiture in 184, competition has finally been realized in the telecommunications industry. Long distance services became the first open market for competition; local service has now become the most recent area for competition. In 1, the Federal Communications Commission (FCC) granted NYNEX, one of the Baby Bells, access to long distance; this opened the doors for the other Baby Bells to enter as well (Verizon). But before this access was granted in 16 to competitive local exchange carriers (CLECs) who entered the local service market and grew in number (Telecommunications Act of 16). With all these companies in the market place, is more or less competition necessary in the industry? This answer has two parts for me; with more competition it could possibly lead to confusion for the customer. Excessive competition could possibly lead to many companies going out of business, with the end result possibly being one company dominating the market again. So, what I think needs to happen would be a level playing field of either several companies who would offer all of these communication technologies or several different companies that offer only a few of the different services available. With all of the different procedures and rules that go with all of these new services, I do not think that one company could handle all of them efficiently and keep up with quality and commitment to customer service.

Competition Influence

My experience with competition in the telecommunications industry has been quite interesting. Considering I work for one of the major telecommunications companies on the east coast, Verizon, I have felt the brunt of competition take its toll on the company. I watched many companies enter local service by using Verizon's facilities and also saw customers change from one provider to the next many times over. The FCC and the Pennsylvania Public Utilities Commission (PUC) would not allow Verizon to enter the long distance market until after they proved themselves by completing a checklist of thirteen items to demonstrate commitment in the competitive market in local service before they could enter the long distance market (Bonocore 8). Once Verizon entered the long distance market, I changed my long distance carrier and now have Verizon for all my telephone communication needs.

Leaders Selecting Partners

These are some of the considerations telecommunications leaders should have when selecting partners from the competitors in the telecommunications industry, they are

· Data - Know the companies infrastructure; how and why they use it

· Basic connectivity what the company uses for Internet access

· Understand the companies' WAN integration; call center integration, and contractual reconciliation/resolution (Gable).

· Determination of the best suitable company with the leaders company

· Customer-managed network

Summary

The competitive landscape in the telecommunications industry has changed from one source to hundreds of sources since 184. The industry went from a monopoly of AT&T to several hundred long distance and local service providers. The future of competition in the telecommunications industry is not company dependent anymore; Bonocore stated, "The real winners in the future will be those businesses that don't get stuck in traffic at the usual bottlenecks, but are able to break away and make customer-managed their next and final destination" (111). Telecommunications businesses and leaders, it seems, will have to change their way of thinking due to the amount of competition, the growth of technology, and customers demands in order to survive and prosper. Telecommunications competition could be bad if there are not enough or too many companies in the industry. With all of the acquisitions and mergers taking place, the leaders in telecommunications industry will need to determine exactly how their business vision will fit in the changing market place before choosing to merge or acquire a business. The bottom line is that competition in the telecommunications industry has just begun, so the future will be the true determination of the businesses that survive.

Works Cited

Bonocore, Joseph. Commanding Communications Navigating Emerging Trends in

Telecommunications. New York Wiley, 001.

Federal Communications Commission. Telecommunications Act of 16.

16 http//www.fcc.gov/telecom.html.

Gable, Robert A. "Coping with Merger-Mania." Business Communications Review

September 18 pp 6-7.

Peha J. M. Telecommunications Competition in 010, Info the Journal of Policy,

Regulation and Strategy for Telecommunications, Information and Media,

April 000.

Telecommunication Industry Resources. Telecommunications Industry Basics.

10 Nov. 00. http//www.telecommunication-industry.org/profile.html .

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