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Page 2 of 4 Importance of research and development R&D is of prime importance for firms in the volatile telecom equipment industry in order to remain competitive, develop new products, and innovate. However, R&D spending is criticized a lot during periods of distress and economic recessions. International expansion of telecommunication carriers The rapid international expansion of telecommunication carriers (hereafter telcos) has been widely reported in the business press. In fact, it has been noted that record levels of foreign direct investment (FDI) being witnessed in the 1990s are partly due to intense foreign investment activity in the telecommunication sector (hereafter telecom) (Thomsen, 1997). Mobile Services to Capture More Advertising Revenue As market penetration rates for mobile services continue to soar in emerging markets, advertisers are expected to dramatically increase their spending on “third-screen” ad campaigns targeted specifically to users of mobile data services, providing a potentially huge new revenue stream for operators of mobile networks, according to the latest report by Pyramid Research. Needless to say Needless to say, the telecommunications market in Asia has all the traits of a thriving business – fierce competition, phenomenal growth and lower call charges. And subscribers are the biggest beneficiaries. Overview of challenges and probablem solutions Telecommunications companies are currently facing significant challenges that include rolling out new Internet protocol (IP) based services, reducing costs, and retaining their preferred customers. |
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