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Telecommunications Essay

2876 words - 12 pages

Telecommunication Industry In Singapore

IS1105 SRATEGIC IT APPLICATIONS Tutorial Group 2 Group 6

Prepared by: Nguyen Thi Bich Van Pham Thanh Ha Poovanna Ponnimada Ashok Tran Thai Tri Tan A0074274 A0074389 A0074597 A0088437

I. II. III. OBJECTIVE INDUSTRY DESCRIPTION PORTER’S FIVE COMPETITIVE FORCES 1. Threat of new entrants 2. Bargaining power of buyers 3. Bargaining power of suppliers 4. Rivalry among Existing Competitors 5. Threat of substitute products or services 1 1 2 2 2 3 4 5

IV. V.

COMPARISON OF THE COMPETITIVE FORCES INFORMATION SYSTEMS IN TELECOMMUNICATION 1. Enterprise Resource Planning a. Telecom Billing System b. Grid Computing Service 2. ...view middle of the document...

There are differences in the telecommunication services offered by these companies. However, in general, the services provided can be categorized into personal services and enterprise services. Personal services includes mobile services such as post-paid and pre-paid plans, international services, SMS and roaming, Internet/broadband services, paid TV services (M1 does not offer TV service) and fixed-line telephone. Bundle services such as mio Home and exPlore Home offered by SingTel bundle up services like fiber broadband, home line and paid TV and charge buyers a lower fee than these services in separation. StarHub offers various similar services, categorizing as home services. Some of the enterprise services are mobile, Internet, telephone for organization, data and IP services, clouding computing, data center services, management services and business solutions. Telecommunication is an important industry in Singapore. Its revenue comprises two-fifth of the total revenue from Information and Communication Industry in Singapore. High quality telecommunication infrastructure and advanced information technology give Singapore the opportunity of becoming an IT and telecommunication services hub.


III. Porter’s five competitive forces:
1. Threat of new entrants: Telecommunication industry in Singapore is highly regulated. New companies are required to apply for licenses from Infocomm and Development Authority of Singapore (IDA). Depending on the type of services these new entrants provide, different licenses are required. (“Setting up a Telecommunication Business in Singapore”, n.d., para.4) Conditions for the licenses are often difficult, which heighten the entry barrier. To enter the market, installing facilities, setting up billing and operational support systems and advertising and marketing campaigns are the activities the new entrants need to carry out (Datamonitor, 2011). There are many costs a company needs to cover upon entry, such as capital and construction costs. Furthermore, new entrants are required to enter at a large scale due to the attendance of largescale companies with strong branding. Nevertheless, efficient operation is not guaranteed. The cost of exit from telecommunication industry can be considered high. This high risk may discourage new entrants into telecommunication industry. Meanwhile, high market growth, due to the international growing demand of communication, telecommunication, still, is an attractive industry Overall, the threat of new entrants into the telecommunication industry is medium low. 2. Bargaining power of buyers: Buyer power of telecommunication industry is lowered by the following reasons. First, buyers, whether as individuals or organizations, are end-users. They do not have tendency to integrate backward into the industry. Second, as telecommunication industry is an oligopolistic market where there are a few and large incumbent players, but many buyers, each buyer also does not have great...

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