Impact Of Globalization On Telecommunication Industry Of India And Aus

Question: Discuss about the Impact of globalization on Telecommunication Industry of India and Australia. Answer: Introduction The report is prepared to highlight the positive and negative impact of globalization on Telecommunication Industry of India and Australia. Telecommunication has become a vital part of the communications for every economy. Some of the impacts include technology innovation, speedy information exchange, and the new way of communication. Impact of globalization on Telecommunication Industry India Positive: By the help of globalization, Indian Telecom Companys revenue has grown by 7% to US$42 billion for 2010-11 financial year and US$17 billion from the segment of telecom equipment. An increase in mobile subscribers is noticed from 37 million to over 846 million for year 2001 to 2011. Foreign investment is grown from 3% to 10% from 2005 to 2009 (India in Business, 2016). Indian Telecom Company has become private because of a contract signed by government of India with France Alcatel CIT which is merged with state-owned telecom company (ITI) to set up 5000,000 lines yearly. Moreover, market share for the private telecom has been increased from 4.7% to 79.2% for financial year 1998 to 2009. Launching of 3G services was impossible to introduce without globalization. Employment opportunity in foreign telecom companies such as Vodaphone India Ltd. and Tata Docomo has increased due to globalization. Negative: Due to globalization, intense competition takes place between the local and foreign telecom companies in India which is impossible to compete in terms of price and services for small scale companies. To earn money, students leave their studies as foreign telecom companies operate in India (The Economic Times, 2016). Per user, average revenue is declined due to pressure of intense competition. Quality of network services will be affected by increased number of operators in a market as spectrum is less available because of major competitors available in the market. Australia Positive: Increase in the users of wireless mobile broadband connections is noted by Globalization. Also, 2-3% growth is expected in number of broadband subscribers yearly. New and advanced technology is experienced by people in many ways such as LTE was first provided by Telstra telecom (IBSI World, 2016). Besides this, M2 Telecom and Macquarie Telecom recently acquired iiNet. Data demand to people was also increased as fixed data demand grew by 40% from 0.96 million terabytes (TB) to 1.3 million TB and 35 percent increase was noticed from 72 000 TB to 110 000 TB in the mobile data. Negative: Australia becomes dependent by the help of importing telecommunication technology for globalization. Telecommunication equipment is imported from other countries for high labor cost in Australia (ACCC, 2016). This results in high labor cost as living standard is high of Australian people. Also, there is generation of greediness. Conclusion It can be concluded that globalization has both negative and positive effect on telecommunication industry of India as well as Australia. Globalization has resulted in speeding up the information exchange. By the help of globalization, anybody can easily link among different areas of world. On the other hand, negative impact includes students leaving their studies to earn money in telecom sector as job availability is easy here. References Australian Competition and Consumer Commission (2016) ACCC Telecommunication Report [Online]. Available at: https://www.accc.gov.au/publications/accc-telecommunications-report (Accessed: 23 August 2016). IBSI World (2016) Telecommunications Services in Australia: Market Research Report. [Online]. Available at: https://www.ibisworld.com.au/industry/default.aspx?indid=1730 (Accessed: 23 August 2016). India in Business (2016) Telecommunications. [Online]. Available at: https://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/371/2 (Accessed: 23 August 2016). The Economic Times (2016) INDIAN TELECOM INDUSTRY. [Online]. Available at: https://economictimes.indiatimes.com/topic/indian-telecom-industry/news (Accessed: 23 August 2016).