Economics - Telecommunications Industry - Research Paper Example

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Telecommunication industry deals with the electronic system along with its activities and services for the purpose of transmitting messages through telephones, cables, radio, Television. Behind the striking growth of the telecommunication industry the major reason would be…
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Economics - Telecommunications Industry Research
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Download file to see previous pages All the leading companies are now keen to invest in this prosperous industry. For all these reason this industry is also creating huge amount of employment opportunity across the globe (, 2009).
It has a great impact on a country’s economy including both microeconomic as well as macroeconomic effects. The social impact is gaining importance day by day with the popularity of social networking sites and SMS. In cultural terms it has raised the availability of music and films to the general mass. Telecommunication has also changed the medium through which people receive their news. A study of US citizens shows that people get their news from TV or radio rather than by news papers. The benefit of the use of internet is also known to everybody by now. In these several ways telecommunication industry helps the world to engulf the barrier of distance that exists among people.
Shifts in demand or supply of a particular commodity occur due to several factors affecting the supply and demand schedule and in the telecommunication industry there exist some factors that can shift the supply and demand schedule upward or downward depending upon the nature of impact. Changes in income, changes in price of other commodities, changes in people’s expectation can influence the demand where as discoveries, introduction of new technologies, changes in input supply can alter the supply schedule directly or indirectly. For example innovation of better and improved technology will help the industry to connect their subscriber in cost that is lower than the previous. More people will demand it leading the demand curve to shift upward and based on improved technology they would be able to serve larger people causing a shift to the supply curve (Amato J D, & Morris S 2002).
Price elasticity of demand and supply is a measure of responsiveness of quantity demanded or supplied respectively to a change in the price of the same ...Download file to see next pagesRead More
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