Till a few years ago it was dominated by Nokia, and companies like LG and Sony were among the key players in the market.
The Great Telecom Implosion It's not just individual companies that are going bankrupt. The industry as a whole has gone from market reform to market ruin.
By Paul Starr The American Prospect, September 8, The dimensions of the collapse in the telecommunications industry during the past two years have been staggering. Half a million people have lost their jobs.
In that time, the Dow Jones communication technology index has dropped 86 percent; the wireless communications index, 89 percent. These are declines in value worthy of comparison to the great crash of Twenty-three telecom companies have gone bankrupt in a wave capped off by the July 21 collapse of WorldCom, the single largest bankruptcy in American history.
And the storm is not over. Many other firms, including some of the biggest, are teetering under a heavy load of debt. Altogether, the industry owes a trillion dollars, "much of which will never be repaid and will have to be written off by investors," Federal Communications Commission Chairman Michael Powell told the Senate Commerce Committee on July To be sure, some of the vanished stock-market wealth consists of -- quaint expression -- "paper" profits.
But a trillion here, a trillion there and soon you're talking about real money. Long-term growth depends on capital flowing to productive purposes; when it is dissipated in such vast quantities, the costs affect the economy as a whole -- not just those unlucky enough to see their investments and jobs vanish.
Almost as staggering as the economic losses, however, is the general unwillingness to acknowledge that something has gone wrong with the policies adopted in recent years to reform telecommunications.
For many of the parties involved, the possibility that reform was based on false and unrealistic premises is simply inadmissible. Ideological investments are sometimes even harder to write off than financial ones.
In addition, the telecom crisis overlaps with the recent spate of corporate scandals, and most of the attention has fallen on criminal misconduct. The stories about accounting fraud and insider deals at WorldCom, Global Crossing and Adelphia may suggest that if only their executives were more ethical, things would be fine.
But the scandals are just one expression of the general crisis affecting telecom companies no matter how ethically managed.
That crisis did not happen all by itself. Reforms adopted during the s were supposed to create a deregulated telecom industry with large numbers of firms generating entrepreneurial innovations and economic growth.
A new consensus held that an industry once thought to be a natural monopoly would actually flourish under competition. The policy has had some successes. But now that the industry is imploding, it is time to re-examine the original vision and ask whether there is a better guide to the future.
How Boom Turned to Bust The great conceit of the s was that previous experience counted for nothing: But history has a way of taking revenge on those who think the past is irrelevant. When it first broke into public view, the Internet seemed like an economic as well as a technological miracle.
As consumers, Americans came to expect that the information and services they found online would be free, while as investors they believed that the Net would generate billions of dollars in profits.
A miracle is exactly what it would have taken to realize both those expectations. Right after the Internet changed everything, the dot-com boom collapsed in the classic pattern of a stock-market bubble, and many of those who had explained to old-timers why companies with no earnings could be worth billions were shocked to discover that the old rules still applied.
Although the Internet mania helped to set it off, the telecom boom differed in several ways. First, compared with fizzy dot-coms, telecom companies seemed to be developing tangible assets that had to be valuable in the information age:The USA is the world’s third biggest mobile telephone market followed by emerging markets of Russia, Indonesia and Brazil; Emerging countries have led the boom in mobile telephone markets as rapid economic growth has increased disposable incomes and many consumers have acquired mobile telephones for the first time.
Four telecom companies - Vietnamobile, a joint venture of Hanoi Telecom and Hongkong based Hutchison Asia Telecommunications, and three state-owned entities, Viettel, Vietnam Posts and Telecommunications Group, MobiFone are expected to receive 5G testing licenses in January.
The world’s top 10 telecommunications companies each have a market value of more than $50 billion. Servicing the world’s ever-growing .
World's top 10 mobile phone companies can be called the year of the smartphone with their sales overtaking feature phone sales. During the year, sales of smartphones accounted for % of the overall mobile phone sales according to data released by research firm Gartner. The Nokia Company is today one of the world’s leading high tech companies.
Its rapidly growth in the s coincided with a basal structural change of the Finnish economy and industry. In this restructuring process Nokia played an important role.
Company and market analysis of Nokia. Print Reference this. Disclaimer: as a one of the world’s largest telecommunications equipment manufactorersIn telecommunication industry, nokia brand are famous and become a leading brand being in markets and business that has expanded greatly in every area to fulfill the .