As the writer of the quote introducing the study section pointed out, more firms are realizing "a cellular wireless solution" generally provides "more stability than the usual wired connections… [and serves as] a valuable asset built for the long haul" ("Lincolnshire Drainage Board…," 2010, ¶ 9). In the book, Integration in Asia and Europe: historical dynamics, political issues, and economic perspectives, Paul J. Welfens (2006) reported that in many Asian countries as well as in the EU and in the U.S., digital telecommunications proves challenging due to intense competition. Problems also regularly surface in fixed-line communications in the Middle East as in some areas; the former state-owned operator continues to fill a dominant position in the local network and the access market.
Expansion of long distance, fixed-network telecommunications became more open in the U.S. after 1984 through the 1996 Telecommunications Act, as it unlocked the local loop to competition. "In Asia, the liberalization of telecommunications is rather advanced in Singapore and in Japan but not so much and other Asian countries" (Welfens, 2006, p. 39). Welfens explained that convergence distorted the market demarcation between TV and Telecommunications as well as between data traffic and voice telephony. In addition to concerns regarding convergence, competition in the area of fixed-line telecommunications serviced has continued to increase.
In the book, Organisations (sic) and the business environment, David J. Campbell and Tom Craig (2005) have noted that the rapid changes in communications technology have contributed to the evolution of the descriptive term, the "communications revolution." Progress in First World telephone systems has supported the dramatic rise in mobile telephony, email, text messaging, and music and video downloads. Despite this progress, a dearth of a fixed-line infrastructure exists in some Third World countries. This absence of fixed-line infrastructure proves to be "a particular advantage in boosting the growth of modern telecommunications in Third World countries" (Campbell & Craig, 2005, p. 317). The need for modern telecommunications in these countries also reflects major implications for trade and economic development in the area of fixed-line telecommunications.
Fixed-line Long-Haul Telecommunications Service
As numerous customers have relinquished their second fixed telecommunications lines or completely transferred to mobile networks, many incumbent operators experienced decreases in their number of fixed-line subscribers. The increasing competition has lead to loss of revenues and reduced profit margins for fixed-line services. Telecommunications services operators experienced "the pressures of mobile infrastructure competition, the challenge of VoIP and regulation to open up the local loop, so that unbundling… [could] take place, with servers providers competing in the local loop" (Organisation for Economic…, 2006, p. 55). To counter these concerns, incumbent operators of fixed networks have begun to consider co-operating with "converged" architectures with mobile and VoIP ventures. As a result, fixed-to-mobile convergence began transforming the large fixed-line operators' fixed infrastructure architecture.
Long distance transmission, identified as the chief change contributing to national, international, terrestrial or sub-sea infrastructure costs, stimulated the growth of the Internet, a primary components of the global fiber network. All growth relating to fixed-line telecommunications, however, ultimately depends on the country's economic circumstances as well as its "(over -) availability of capacity" (Organisation for Economic…, 2006, p. 95). The world's constantly expanding network of submarine fiber optic cables also proves to be a critical component fixed-line telecommunications services. For more than a decade, the Internet, as well as an ongoing international trend of privatization of national telecommunications industries, has contributed to the increasing demand for broadwidth. This demand has surpassed the resources satellite transmission offers in voice and data. "The fraction of transoceanic voice and data transmitted over undersea cables has grown in the past 12 [17in 2010] years from 2% to as high as 80% in 2000" (Organisation for Economic…, p. 96). The numbers of cables on the seabed has matched the growth of demand. In regard to progress made by geostationary satellites for long distance transmission, their cost, delay, limitations and reliability contribute to them being deemed a redundancy backup for WDM fiber.
Procurements in the Middle East/Southwest Asia
In some parts of the Middle East and other parts of the world, partly due to the increase of mobiles, the use of fixed-line voice revenues has decreased. To improve profits, in response to the reduction in revenues; telcos have begun changing to broadband services. In the Arab Middle East, fixed-line teledensity initially appears extremely low; compared to teledensity rates of approximately 60% in the United States. The lower figures, however, may be attributed to the larger household sizes in the Middle East and not as low as they...
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