Impact of Globalisation on the Telecommunication Industry

Title

What is the Impact of Globalisation on the telecommunication industry of Pakistan?

Introduction

My proposal is intended to show the impact of globalisation on the telecommunication industry of Pakistan. Globalisation affected the every industry of the world and it affected a lot telecommunication industry in the world especially in developing countries. I want to focus on the telecom industry of Pakistan. Through globalisation we try to meet to the requirements which people facing in this existing world. The globalisation has its both aspects positive and negative. Now it depends on us how we use the globalisation factor to take advantages from them. In developing countries people are confused as well from globalization. It gives more and more benefits to the companies and it has its bad impacts on small business as well. It affects the local chains. Most of the time the local chains doest want any other company to be as a competitor because they want to rule in the market as a monopolist. There is only globalization which can give relief to the people and give better thing better opportunities and better understanding of the product. The world has become a global village now you can get anything anywhere in the world it is all charisma of globalisation. Globalisation made world so closer to each other and specially the telecom sector. We need every where to communicate in the world on different issues and different location. It is the required of modern world.

Telecom Industry in Pakistan or Background

Telecom department came into existence in Pakistan in 1962. It is too old now. PTCL was the first company which started the telecom sector in Pakistan. In start PTCL was only the company which provides all the telecommunication facilities to the whole population of the Pakistan. But with the passage of time many other cellular companies started their business in Pakistan. The first licence issues to Paktel and Pakcom in Pakistan in the category of cellular services in 1990 then second step took by PTCL to launch its subsidiary Ufone in Pakistan that was the first step in the telecom sector to attract people. PTCL launched Ufone in 1991.

Three years passed but no any cellular company started its business. What was the story behind this why any company did not pay attention to get into a big market? Because Ufone was the subsidiary PTCL and they didn’t let do any other company to come in to the market. They had the monopoly in the market. They didn’t issue any single licence to any company to get in to the market. After three years in 1994 they issued a licence to company called Mobilink. The founder of the company was Motorola USA. Mobilink was the first company which started its business to an Ufone holding market. It was a big challenge for Mobilink to get in to market and start its business and give hard time because Ufone had monopoly in the market and the home advantage as well. Now the Orascom telecom the Egyptian group is controlling the company. According to PTA (Pakistan Telecommunication Authority) Mobilink has nearly 30million subscribers and the leading cellular company in Pakistan.

After this the Govt of Pakistan realise that there is still room in the telecom industry and they issued 2 more licences in 2004 that was the real time when the telecom boom started in Pakistan. That was the time when we can say the globalization affected the Pakistan telecom sector. It was the ideal time and for the people when they get benefited from globalization. This time these two companies have to penetrate the market. When any company wants to penetrate the market? They give more incentive to the general public. General people get benefits from this development. There was competition in the market but there was space as well for the more cellular companies to come in and provide more and more benefits to the people. Initially when the telecom trend started in Pakistan it was unable to afford for the poor people but with the passage of time it became in the reach of poor people.

In 2008 the China mobile launched its services in Pakistan as well. As we know very well china mobile is a largest cellular company in the world. With the commencement of China Mobile in Pakistan the competition increased more but it all goes in the benefit of globalization in the telecom industry of Pakistan.

Rational and Significance

As we know very well the globalisation playing major role in developing countries on every type of industry and business. I want to look at the actual impacts of globalisation which are affecting the telecom industry of Pakistan. What types of advantage and disadvantages telecom industry achieved? What is the contribution of telecom industry in the economic growth? What are the impacts of all this advancement on the social and cultural factors of the company?

Literature Review

Many people wrote about the telecommunication and the impact of globalisation on telecommunication. They mentioned that what major changes came in the industry of telecommunication due to globalisation. With globalisation lots advancement came in Pakistan telecommunication sector. Now Pakistan is on the level off all countries in the region in the telecom sector. The telecom is giving more benefit to people more as compare to before.

B. Midhat M. Sana (2006) Business and Public Policy

Globalisation is breaking the gaps and epically its impact on telecommunication and information. Creating paradox between who have information and who have not. This revolution is providing chance to everyone to contribute as much as they can. Now a day’s information systems are plying major role in developments of countries and the telecommunication is one of them. In the current time of the world people don’t have many things like food, shelter and water etc but they should have the telecommunication facilities to communicate the others. Today, the telecommunication has become more dominant factor in the development of any country and it is playing a vital role as well. It is necessary to have better telecommunication faculties for every country.

M. Yousaf Haroon (2002) Digital Opportunity Initiative for Pakistan

In the recent business scenario the world is facing a great recession and every sector of economy going to downfall. Recession at-least hit the every sector of economies. The revenues are going down day by day only one sector which is a bit far away from recession. Pakistan Telecommunication Authority (PTA) considered telecom as a telecom industry. Pakistan telecommunication authority very easily liberalised the telecommunication industry in Pakistan. Pakistan telecommunication faced a bad time in term of revenue and getting more customer but now slowly and steadily on the top now. The tele density was 44.06% in 2005 -2006 and it increased to 58.06 in 2007-2008. The revenue generated to telecom sector grown 35% in 2008- 2009. There was bit short fall in profit as well because the prices rise in food sector. Inflation hits every sector of life. While the growth in telecom sector was incredible as well it was up to 39% in 2008. PTA till now issued 92 wireless local loop (WLL) licences. PTA also gave 14 licences to the companies for Long Distance and International services (LDI). Internet service is available most of the cities and villages of Pakistan mostly it nearly reached to 2339. Most of the companies now is focusing on the northern areas and Azad Jamu Kashmir (AJK) to increase their customers.

B. Asjad (2009) Telecom Industry

In the current cellular service providing in the USA the most of the company charge extra bill by mistake. When any company representative call to cellular company about the billing information they say it is mistake and approximately 80% of USA business are over charged on their bills. When you talk to any cellular company representative about all these issues they say they all r coming from day 1st.

K. Ben (Dec-11 2005)

Telecommunication is getting more and more popular in the modern time because before that was a charm in the field. But with the passage of time and more advancement in the IT sector, the devices which are being used in the technologies make it more attractive. This attraction made this industry more profitable and heart touching.

Globalisation

Globalisation is process through which the world becoming closer day by day to do business and gain their object. There is no brief definition to describe the globalisation through globalisation we can bring anything closer to anyone. Globalisation can bring many things closer to gain the competitive advantage.

According to business dictionary we can define globalisation, “ Worldwide movement toward economic, financial, trade, and communications integration. Globalization implies opening out beyond local and nationalistic perspectives to a broader outlook of an interconnected and inter-dependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labour and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately”.

Globalisation is way to connect the people of one country to another. It is possible through globalisation only. Globalisation is becoming very major factor of economics. There are groups pro-globalisation and anti globalisation. They have their own reservation about globalisation.

Effects of Globalisation

According to economist there are the effects of globalisation in the whole world. These are factors which affect the economies of the world.

International Trade

There is big effect on the international trade. Globalisation is factor helping in international trade too much. With the help of globalisation any company can start its business outside the country. For example a company losing its consumer in once country, globalisation is best toll to go abroad and start its business in any international market.

Technological improvement

Globalisation is also effecting on the technological improvement. if any international company launch its product in any host country with lots of technological advancement. The host country also makes his way to improve its technologies.

Multinational companies and influences

Multinational companies have offices in the world. The companies had head office in the parent country. They control all their operation from the head office. Like most of the car companies have offices in Japan. They control its entire production requirement from the head office.

Human resource mobility

Globalisation is also mobilizing human resource all over the world. It is helping us to understand the global cultural environment which is helpful for any business. Like the labour is much cheaper in Asia as compare to Europe. This is a positive edge for the most multinational companies to produce its goods in any other country and sell anywhere where they want. Like manpower shortage in Japan, Malaysia are forcing them to import labour from other countries.

Outsourcing

Globalisation is helping a lot in the outsourcing of the countries. Many countries are using globalisation as an outsourcing tool. China and India are the main countries which are helping the whole world in field of outsourcing.

Civil Society

Globalisation is affecting the civil societies a lot. Most of NGO’s working worldwide to help the people especially in developing countries. Especially the NGO’s for women rights and child labour.

Advantage of Globalisation

There lots of advantages which are gaining from globalisation.

Globalisation is increasing the trade between nations.

Globalisation is a movement of capital from developed country to developing country.

An organisation can work anywhere where the environment is suitable for business.

Globalisation is also a toll to communicate the whole world individually and collectively as well.

Globalisation is a greater toll to move the things around the whole world.

Globalisation is also a toll to remove the cultural barriers.

Disadvantages of Globalisation

Exchange f labour from developed to developing and problem of labour cost.

Globalisation could cause economic disturbance that one country affecting all.

World media can give benefit one to over another.

Globalisation is violating the rule of cultural and religion.

There is a chance to transfer of diseases among nations.

There is a healthy chance that materialism can be generated.

There are chances of war between the developing countries.

There are no rules in the developing countries about child labour and environment like pollution.

International bodies like WTO can break the confidence of nation.

Aims

Globalisation has broader range of positive and negative effects. My aim is to find out what are benefits or losses the Pakistan gaining from the globalisation. Globalisation has most probably positive effects on the developing countries and Pakistan comes under developed country. And find out what special effects on the telecom industry of Pakistan. Is the globalisation taking the telecommunication industry of Pakistan on boom or going down. As we know very well globalisation effecting a lot all over the world. I need to find out all those issues.

Objectives

What positive changes globalisation brought.

What particular benefits the people took from this globalisation revolution.

What are the benefits for Pakistan economy?

How much improvement came in the standard of living?

How much this industry contributing in the economy of Pakistan.

How many people think that this revolution brought positive changes in the country?

What negative factors globalisation cause in the economy.

Research Question

Is globalisation is good thing or bad?

Is globalisation is good for developing countries.

What losses face the by the small business due to globalisation.

Is globalisation effective for the telecommunication industry?

Research Methods

The research method is very important to make any further research or to make dissertation. The most appropriate research which I thought would be the exploratory. Exploratory research is the combination of Qualitative and Quantitative research. I would try to use all the methods of this research. My research would rely most of the descriptive method of research. In descriptive method research we collect, organise and summarise all the data and use for our research purposes. We manage data classify data according to our related needs and the compilation is also a very big process to do a proper research.

The most effective for me would be to at the journal which is related to telecommunication industry. I have done already emails to the concerned departments. Punch (2000) Dane’s (1999)

I can take mostly data from the official websites of the organisation. Most of the organisations publish all their market research and profit and loss statements. These websites would help me out a lot to handle all my relevant research. Sometimes there is not enough information in that case I know some of my friends in Pakistan in telecom sectors. They would provide me lot of information which is too beneficial for me. It easy to find out the data but the problem is to manage all the data and do the according to your need. I would use both qualitative and quantitative methods to make my research more real and knowledge able.

Time Line

No	Activity	Dates
1	Final submission of proposal	20th April 2010
2	Collect relevant data for chosen industry for proposed research	15th June 2010
3	Arrangements for primary & Secondary data (emails, phone calls) will ready on	28th June 2010
4	Compiling all the related research for further research.	5th July 2010
5	First analysis of acquired data information	20th July 2010
6	Start making report on basis of available knowledge	3rd Aug 2010
7	First layout of research work	17th Aug 2010
8	Final compilation of all progressed work	7th Sep 2010
9	Checking & ready for submission final dissertation	15th Sep 2010

References

O. Mayeuri and C Gunthar (1995), Info. Tech. Globalisation Implication for Developing Countries, Commonwealth secretariat 1st Edition Pp 46 to 54

L. Frank J (2009), Globalisation Making of the World Society, Utopia Press Ltd. 1st Edition Pp 79 to 85

Punch, K.F. (2000), Developing Effective Research Proposals. London: Sage Publications

Dane, F.C. (1990), Research Methods. Cambridge: Thomas brooks.

Isabelle Paradis November-2006

http://www.thefreelibrary.com/Telenor+Pakistan+becomes+first+cellular+operator+to+complete+USF+…-a0208658564 site visited at 13.10, 09/04/2010

http://www.pakistaneconomist.com/pagesearch/Search-Engine2003/S.E112.asp site visited at 23.29, 11/04/2010

http://news.bbc.co.uk/1/hi/business/1790941.stm site visited 15.20, 11/04/2010

http://en.wikipedia.org/wiki/Mobilink site visited at 12.15, 14/04/2010

http://www.waridtel.com/about/index.phpsite visited 13.25, 14/04/2010

http://www.zong.com.pk/about_us.htmlsite visited at 14.20, 14/04/2010

http://www.businessdictionary.com/definition/globalization.htmlsite visited at 00.24, 15/04/2010

http://www.investorwords.com/2182/globalization.html site visited at 01.35, 15/04/2010