As per jerry hausman, prof. economics – MIT “there is no reason for long distance companies like AT&T to exist. They are simply selling a commodity.”
Short arm of the law
In a liberalised market, roll of govt for regulation
No special regulatory framework – new zealand, no spurt for competition, with legal battles I competitiors
Relaxed regulatory intervention – finland, with no single local monopoly, this approach can work
With broad licencing, service specific regulation isn’t reqd, however for cases like interconnection, and access to fixed line network, it’s still necessary, especially with existance of single local monopoly
Chile – privatised carriers in late 80s, has developing world’s most open telecom markets.
airborne
convenience of mobility – found time in saturated westarn telecom markets with inelastic supply of ppl, & their time
capital costs for cellular are lower than for wired phones
gap between price of fixed & moble is shrinking
As prices fall,revenue per subscriber will fall, hence also the margins
Mobile will become por person’s comm device. Problems of churn & bad debt due to move towards low-end market will be offset using pre-paid services
Mobile intercom in corporate environments
Mobile -> voice + data services + organiser + net …
Down with distance
Liberalised telecom sectors for long-ditance/international calls with public operator’s monopoly broken will result in, interational calling rates coming down drastically, as the market prefering the chippest route & not the shortest route bet source & destination.
From circuits to packets
Within a decate, a vast bulk of com traffic will be data, a new driver being the billions of devices attached to the internet.
The gate to the home
Internet saved fixed line, which might otherwise have lost ground to wireless telephone. - Mr Hausman , MIT
Once local comm network becomes as digital as internet, data transfer will become the main basis for the internet charges.
With coper wire & TV cable, the 3rd player to local conn might be something like teledesic a bunch of low orbiting satalites giving instant connectivity across the globe, just with a small receiving dish.
Better, faster, cheaper
Telephone industry will gradually assume the structure of internet
To originate a call – will be retail business
To terminate a call will be big-money business – with a local network to maintain
Interconnect business will be a strong core of tele companies’ revenues.
Globally accessible services of voice & data, like
As packets replace circuits, pricing based on QoS, bandwidth of content
With communication more convenient, mobile & global in reach, it will bring companies more in touch with their parteners, suppliers, that will make outsourcing easier, as it will be easier to moniter delivery & quality.
Combination of internet & wireless allows developing countries to leap seleval tech stages to bring them up to 1st world standards.
People will belong to diff. Constituencies, not geographically but electronically.
