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UK Fixed Line Telecommunication Industry - Essay Example
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…
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 ...