The Monopoly of Telecommunication in UAE - Literature review Example

Prof: THE MONOPOLY OF TELECOMMUNICATION IN UAE Literaturereview The monopoly of telecommunication in the UAE Literature review statement: Investigating the impact of having different providers of telecommunication in Europe and other developed countries Introduction The literature review summarizes and synthesize the arguments of other researchers on the impact that different providers of telecommunication in Europe and other developed countries. Telecommunication businesses in Europe and other developed countries are facing a high revolution induced by the growing nature of technologies. For instance, since 2002 mobile subscription has seen a dynamic growth both in Europe and other developed countries. Statistics reveals that over 70% of the world’s population has subscribed to mobile usage and the technologies that come with mobile devices. Telecommunication is a vital factor for the stability of the country’s economy. Technology has also brought many businesses to existence for the provision of telecommunications provision services. Telecommunication has become a major revenue earner for many developed countries in Europe and other developed countries all over the world. The paper will provide a handy guide to the topic of telecommunication. It aims to keep the reader up to date with what is current in the field of telecommunication as well as offering scholars an emphasized credibility of sources. The paper will also provide a solid background of having different telecommunications service providers in Europe and other developed countries. Summary The literature review is based on six sources. The sources are generated through criteria that demands for only well-conducted, robust and unbiased study. It identifies areas for future research and gaps in the existing research. Carlos, E. Y. S. (2011) Carried out research and identified future research areas in the telecommunication services. He developed studies on organizing innovation. His case was based on the telecommunication services next generation networks. He is a credible researcher who apart from agreeing with the benefits of multiple service provisions also critiques its impact on developed countries. Feldkircher, m., Martin, R., & Worz, J. (2010) are researchers who came up with studies that were geared towards measuring competition of telecommunication services in developed countries. Their main focus was the European economic integrations. They are a credible source of literature because they critically carried an extensive study that was robust and unbiased. Literature Gruber, H. and Koutroumpis, P. (90) carried out a credible research on mobile communication by critically analyzing diffusion facts and prospects, information and strategies. Their research critically analyzed the effects of different service providers in communication. Mbogo, m. (182-183) researched on the impact of the mobile payment on the success and growth of businesses. He studied the case of M-pesa in Kenya as well as other mobile network service providers who offer mobile money payment such as Airtel Africa found in developed countries, in Africa such as South Africa. Vourvachaki, E. (386) also conducted robust, unbiased studies. The main focus of this researcher was to establish the impact of information technologies in a multi-sector economy. The researcher also included the results that these telecommunication services had on developed countries with different service providers. All the six studies in one way or another explain the impacts of many suppliers of telecommunication businesses services. One fact observed in all the studies is the mention of the evolution of technologies around the world. The services have evolved from the plain systems of texting and messaging and plain voicing to a richly modern and complex media services. Technological advancement is cited as the basic ingredient that has facilitated these growths. According to Mbogo (183), Jerbashian, (431) and Gruber & Koutroumpis, (90), Internet has been attributed for the global interconnections. Different providers have facilitated the production of many factors that are seen as pillars to the economic growth of the Europe economies and other developing worlds (Carlos, 100: Feldkircher, Martin & Worz, 90). These pillars are characterized as new trends in the economies of these countries. Different providers facilitate competition such that they encourage innovation and inventions in order to maintain a healthy symbiosis in the ecosystem of telecommunication. According to Mbogo (186), such innovations include end user mobility. This mobility includes mobile banking and location based services. Vourvachaki (386), Gruber & Koutroumpis (110), and Jerbashian (431) stipulate that many providers of telecommunication services have impacted and enhanced on the M2M (machine to machine) communications. These types of communication have gained popularity in every sector in the developed countries with a strong base in the Europe. Smart device use has invaded sectors such as health, energy, automotive, and logistics among many others. Carlos (112) and Mbogo (187) argued for the case that multiple telecommunication service providers have stirred the development of enterprise mobility such as field sales force enablement and logistics. In addition, Vourachaki (386) stipulates that many players in telecommunication services have created room for positive and healthy competition such that telecommunication mobility has been degenerated. This mobility includes the development of many businesses that engage in creating quality communication devices such as smart phones and smart application. As a result of these innovations, telecommunication mobility has positively attributed for services such as voice assistants, messaging, task and calendar management and video conference. The research indicates that social networking is a resultant of many players in the industry of telecommunications. Different telecommunication service providers in Europe started engaging in changes, reorganizing themselves and developing capabilities in order to maintain a healthy and high level of competitiveness. Carlos (97) carried out an analysis that focused on how different players in the service industry carry out innovations in services. Carlos (97), Gruber & Koutroumpis (113) and Feldkircher, Martin, & Worz (110) discussed the incumbent nature of European service providers, (Deutsche Telecom and British Telecom) apply in embracing open innovations brought up by different service providers. All the researchers found that there is a greater challenge for incumbent players as compared to other operators such as mobile service operators and cable industries. Feldkircher, Martin, & Worz paper (112) finds out those different incumbent players in the service industry derive value from platform and software sharing. The move exposes a service provider’s capabilities and enhances development of business models that assist the different players to interoperate. In his research, Feldkircher, Martin, & Worz (127) stipulate that the ability of a service provider will its success as an operative model. This was also stipulated in Gruber & Koutroumpis (177-184) and Carlos (121) research papers where they assert that open innovation and value innovation are vital ingredients in the telecommunication industry therefore supporting the existence of different service providers in the business. Mbogo (189-191) argues that the platform innovations have led and facilitated service innovation in telecommunication industries especially when there is an existing cohesion by the different service providers. Mbogo stipulates that micro-business in both developed and developing countries have increased the opportunities displayed by different telecommunication service providers such that mobile payment deploring has delivered quality and increased reliability on their services. The speed of carrying out business transactions has also been fastened by the technological in mobile phone banking. Mbogo’s research applied the theory of technology acceptance model that stipulates and discusses the impact of share telecommunication technologies. The study stipulates that having different service providers in the telecommunication industry has helped in optimization of other important dynamic capabilities. These capabilities include strategic planning, new product/service development and quality project management. They are all supported by systems integrations by the different firms. A diversified review of works carried out earlier by Carlos (142), Feldkircher, Martin, & Worz paper (130-133), Gruber & Koutroumpis (127-129) and Mbogo (188-193) show that different players in service provision in telecommunication create a positive impact to the customers. They argue that the customers are facilitated with an array of choice on what services to use depending on the satisfaction interests. They also stipulated that it is an important process that has enabled the creation of quality services due to customers’ freedom of choice. Gruber & Koutroumpis (127-129) and Mbogo (188-193) stipulate that different players constitute a free market economy that is driven by innovation and the notion that a player’s reward for success is attained by hard work and ingenuity. Jerbashian (431) argues that the various players in the service industry of telecommunication have produced negative impacts as much as it has brought positive impact. Jerbashian argument is supported by Vourvachaki (386). They disagree with the research hypothesis stating that different telecommunication service providers (especially in developed countries in other countries outside Europe) increase competition to unnecessary levels. They argue that these levels of competition eliminate the benefits that firms derive from competition. Different players aim at destroying the companies of other providers instead of stirring a healthy co-existence. The competition increases falling levels of prices such that only the big firms have been able to survive in the long-rung of the companies. It is a disadvantage because these firms do not consider the quality as such. They are more interested in the acquisition of broader territories and monopolize the services (Jerbashian 431: Vourvachaki, 386). The big firms have engaged in monopoly creation such that they acquire rights of service provision. The big firms developed their notable competition by clinging on strategies that became diverse for the presence of various service industries. These factors included lowering tariffs such that the billing began to take shape per second rather than per minute. In terms of regulations, they ventured in spectrum allocation among the players. Jerbashian (431) and Vourvachaki (386) also stipulate that, in their argument against the research hypothesis, many different players in the business bring in the outsourcing that in return has repercussions such as entry of low pricing in the market. The two researchers stipulate that low pricing is harmful to the market as it leads to overcrowding that in return has led to monopoly emergence for those companies with economies of scale. In their argument, the two researchers stipulate that in reality perfect free market economies do not exist. Vourvachaki (386) indicates that even in Europe, countries that developed may years ago have not been able to maintain and sustain free market economies. There are many controls imposed, especially by the government, creating an imbalanced service provision for all the deferent players in service provision is telecommunication hence creating monopolistic powers by generating diseconomy of scales for entrants. Creation of monopoly powers in this service provision has created poor services for customers. The individual entrepreneurial skills are harbored by those service providers who enjoy exclusive economies of scale. Literature gaps Analyzing the already existing literature and research indicates that literature body on different players in the telecommunication industries are growing in the last 10 years. Most of the literature gives exclusive focus on the impacts that these players pose in telecommunication, in developed countries. A significant percentage has reviewed different players and their impact in Europe. A growing body of literature has also diversified its roots to studying effects of different service providers in open innovation and open business models. Considerably, some research has been carried out in service innovation offered by different service providers of telecommunication on their open platforms for service development and delivery. However, the existence of empirical research on impacts of different service providers in Europe and other developed countries has not identified concrete impacts associated with these service providers in Europe or other developed countries. The existing research has left gaps on different areas. One of the areas is the prevalence of open innovations and open business models in the telecommunications sector and the impacts it creates under various service providers in the country. There are also gaps on how different providers impact on technological advancement and the specific application of open/network centric innovation models in the telecommunication sector. Another area where the research has left gaps is on how the different players help one single player to gain majority popularity such that a monopoly of a kind is created. Last but not least, the research has left gaps on observations and recommendations based on empirical findings. In an open discussion manner, an empirical analysis of the data obtained in different research is missing ion the existing research/literature. In addition, there is less research on Europe different service providers as well as other developed countries. The existing research is characterized by very sketchy findings creating gaps in the existing literature. Conclusion and areas for future research The different sets of literature indicate that those different service providers in telecommunication, in Europe and other developed countries, have degenerated impacts. Most of the impacts are positive while others are negative depending on the affected party. The impacts play a significant role in the service industry. Due to the presence of those providers, many research forums have evolved platforms that facilitate effective analysis of the impacts the providers play in the economy of developed countries. Further research can be carried out in identifying business models and open innovation models that can help the different players to provide services by unlocking the long business deadlock between them. The research can help identify ways through which the providers can launch platform-based services. The research should show ways in which the services will enable co-creation among the different telecommunications service providers. There is also room for research on how the providers can manage and create value added services that will sustain a healthy co-existence of the providers with an aim to customer satisfaction. There is also room for researching how the infrastructures needed for service provision under telecommunication can be sustained through corporate sharing among the providers. Further studies can also be done on the way these providers are embracing technology advancements in telecommunication such as open innovations. The impacts of different providers in the telecommunication industry allow researchers to carry out studies on symbiosis of those providers. Works Cited. Carlos, E. Y. S. Organizing innovation in services: The case of telecommunications next Generation networks (NGN), IEEE, and Innovations in NGN: Future Network and Services. Harvard Business School Press. (2011). Print. Feldkircher, M, Martin R, & Worz J. Measuring competition in CESEE: Stylized facts and determinants across countries and sectors. Focus on European Economic Integration, 3, 38{62}. Research and Graduate Education – Economic Institute, Prague. (2010). Print. Gruber, H. and Koutroumpis P. Mobile Communications: Diffusion Facts and Prospects. Communications and Strategies, No 77(1). (2010). Print. Jerbashian, V. Telecommunications industry and economic growth: How its market structure matters. CERGE-EI Working Papers, wp. 431, The Center for Economic Research and Graduate Education – Economic Institute, Prague. (2011). Print. Mbogo, M. The Impact of Mobile Payments on the Success and Growth of Micro Business: The Case of M-Pesa in Kenya. The Journal of Language, Technology & Entrepreneurship in Africa, 2,1, 182-203. (2010). Print. Vourvachaki, E. Information and communication technologies in a multi-sector Endogenous growth model. CERGE-EI Working Papers, wp. 386. (2010). Print. Read More