StudentShare solutions
Triangle menu

UK Fixed Line Telecommunication Industry - Essay Example

Not dowloaded yet

Extract of sample
UK Fixed Line Telecommunication Industry

As and when this happens, BT will be superiorly poised to leverage its huge infrastructure to add to its revenues. (Prodhan G. and Biilingham E., 2009)
Just like any other market, the UK market has two distinct group of consumers; business consumers residing in metropolitan cities who subscribed to high value services, and the vast mass market spread all over the country who are unwilling/unable to pay a premium for high value services. While BT has been able to obtain a legal ruling against imposition of Universal Service Obligation that would have required it to offer fixed-line connectivity to all UK households, any future imposition of similar clauses by the British Government may severely affect its profitability. (Giles C., n.d.)
However, the government also believes that Internet connectivity is core to the growth of the economy and given the severe recessionary conditions now, the government may decide to give a major thrust in increasing Internet connectivity. This may turn out to be a major boost to BT's fixed line business. (Holton K. and Prodhan G., January 2009)
Additionally, it has been indicated that BT will be free to have its own pricing strategy for the 21CN supper fast broad band network. This will help BT increase its profitability. (Parker A. and Fenton B., February 2009)
UK has a very stable and matured economy that has little scope f...
While the national GDP in 2008 was about 1.8 trillion GBP, the growth rate of the economy in 2008 over 2007 was about 3%. The present crisis has hit the economy hard, and the UK economy is expected to shrink by as much as 2%. (UK output, income and expenditure 4th quarter 2008, February 2009).

However, the government has responded by cutting VAT by 250 percentage points, from 17.5 to 15%. If BT can pass this benefit to the end users, it can expect to negate a part of the decline of business due to recession. Additionally, economies do bounce back from recessions with a period of 3 to 5 quarters, and the economy may be expected to hit the growth path by mid/end of 2010.

Bank of England, the central bank, has cut interest rates to 1.5%, there by drastically decreasing the cost of capital. Again a weak pound against the Dollar and Euro is significantly affecting the growth of the communication service providers. (UK in recession as economy slides, January 2009)

The most dampening factor for any business is the prevailing unemployment rates in the country. With an unemployment rate of 6.1%, the general sentiment is highly depressed, and will adversely affect BT's fixed line business. (UK unemployment hits 1.92 million, January 2009)
Given the present recessionary trends, the economic factors are predominantly stacked against any business that is trying to survive and grow. However, supportive government measures and the expectation of an early recovery also offer sufficient hope for BT's fixed line business.

Social factors

The penetration level of fixed line telecommunications in UK is among the highest in the world. However, there still considerable room for growth. While about 66% of the population has access to Internet, the number of broadband ...Show more

Summary

The decision to end the duopoly of BT and throw open the telecommunications market has been one of the major political factors that has shaped BT's history in recent past. Going forward, BT's operations can be significantly influenced by change in government policies…
Author : lizziepollich
UK Fixed Line Telecommunication Industry essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"UK Fixed Line Telecommunication Industry"
with a personal 20% discount.
Grab the best paper

Related Essays

UK on-line advertising
Even job orders are being posted online by various companies. While other advertisers tend to spend millions of dollars on television networks, newspapers or magazines, and radio advertisement, there are some advertisers that would rather invest their money with online advertising
5 pages (1250 words) Essay
The European Telecommunication Market
They are said to have sales of 52.9 billion euros in the year 2007. The growth of telecom companies is contributed mainly to the fundamental change in the structure of the telecommunication industry. This industry shifted its focus from being a monopolist to an industry that started encouraging the competition.
9 pages (2250 words) Essay
US Telecommunication Industry
US Telecommunication Industry The best way of expressing the impact of viewing the television programs in the United States was well founded even as back as 1961, by Newton Minow, the then Chairperson of Federal Communications Commission. His usage of the phrase 'Vast Wasteland' in describing the commercial television as existed at that period is fitting absolutely to the current situation prevalent in the US Commercial Broadcasting Industry.
9 pages (2250 words) Essay
Telecom Industry
The process by which the price and output are determined in the real world is strongly affected by the structure of the market. Most markets fall within one of the four different types of market structures. They are perfect competition(many buyers and sellers for a homogeneous product with perfect mobility of resources and each seller is too small to affect the price of the product) at one extreme, pure monopoly at the opposite extreme, and monopolistic competition( many sellers for a homogeneous or differentiated product and entry & exit in to the industry is easy in the long run) and oligopoly(few sellers of a homogeneous or differentiated product with difficulty in entry in to the industr
12 pages (3000 words) Essay
A strategic external analysis of a company and industry dynamics
This has on the one hand, brought in new players into the market virtually spelling death-knell for fixed line operators overnight and on the other, created vast opportunities for business
2 pages (500 words) Essay
U.S. Telecommunication Industry
Grabbing audience, holding on to them and to monetize on the audience have become tough jobs for the Broad Cast companies with the advent of Internet sites like YouTube that offer television programming including shows from NBC with little financial gain for the networks.
7 pages (1750 words) Essay
U.S. Telecommunication Industry
With the radical change in the viewing patterns, the commercial programs have made at least a majority of the viewers, slaves to the
9 pages (2250 words) Essay
PEST Analysis on UK Fixed Line Telecommunication industry
Unlike all other recent entrants in the UK telecommunications industry, BT is restricted by a range of regulations that were aimed at fostering competition. Now that this market has already witnessed years of competition, regulations that
4 pages (1000 words) Essay
Telecommunication companies in uk (fixed line)
The European Markets have shown a growth of almost $179.5 billion and the Asia Pacific markets have shown a growth of almost $180.6
4 pages (1000 words) Essay
Cruise Line Industry
Also included are demographics showing the market that Carnival targets, strengths, weaknesses and today’s threats. Finally, where does Carnival stand in
6 pages (1500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation