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  Telecommunications Industry Profile
 
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Sector trends
Wireless
Satellite
Cable
ISP's
Manufacturers
Job Prospects
Qualifications

Since the privatisation of BT and the break up of AT&T in the US in 1984, to say the telecommunications industry has gone through massive changes is an understatement. The changes sparked a technological race, as the big boys and the growing number of smaller companies invented innovative solutions to mark their position in the marketplace.

The Telecommunications industry is made up of manufacturers and service providers who make:

  • computer chips
  • satellite equipment
  • fibre optics
  • switching equipment
  • microwave equipment
  • mobile handsets
  • and provide phone, cable and satellite communication technology in the form of telephony, TV, and the internet.

This race has enabled us to talk through phones that you can carry in your pocket, communicate with people around the world from the comfort of your own home in front of an PC, hold international power meetings through tiny TV devices, have more TV channels to choose from, send photographs of your baby's christening to family members you haven't seen in years through the touch of a button and read a newspaper without using your hands.

Admittedly, we have had to go through the development stages together. The first mobiles were the size of bricks and just as heavy. Computers with a maximum memory capacity of 128K (that cost a fortune), could do little other than ping a fat letter "I" from one end of the screen to another, were just a couple of things that have got us to where we are now.

The last decade has seen a mushrooming of activity in the industry as companies took a global perspective of their market. Deregulation of local telecom markets encouraged conglomerates to take over smaller players around the world and build up partnerships with the bigger ones, in an attempt to maximise their business opportunities.

Bill Gates stole an enormous amount of ground on Apple when he started to supply his own operating system, initially cheaply then for free to computer vendors. This increase in computing technology and the positive knock on effects on business led to the development of spin off specialisms which were needed to take people and companies a technological step forward, such as network support in hardware and software development for…software!

These advances have woven themselves into the fabric of our society. Technology is now not just for business but the priority for the ordinary consumer.

The integration of mobile phones and the internet has encouraged many companies to take a gamble in anticipating the next development in the sector. Short Messaging Service (SMS) has proved to be extremely popular, especially with the young. WAP has yet to reach its full potential in integrating new technologies whilst at the same time, new formats are arriving on the horizon.

Personal Digital Assistants (PDAs) now more than double up into a notebook, address book, mobile phone, email and internet access and still recognise your hand writing for those 'good old days' moments.

New and cheaper ways of accessing online services on the move are developing which not only illustrates the speed at which the industry is evolving but also the risk involved in investing in technology which may be obsolete, after waking up the next morning.

Sector Trends
The expensive rounds for 3G licenses in the UK and Europe may turn out to be a disaster as companies bid massive sums for the privilege of gaining wider bandwidth which will hopefully mean better products and services for the consumer.

In their quest to get a foothold in the perceived lucrative high bandwidth information market, many companies are at risk of being bankrupt as they find out that the market may not have caught up with the technology yet.

One of the most important trends of all is the rapid movement toward finally erasing the lines between telecommunications, computing, and entertainment. It all comes together in the set-top TV box, which will connect you to the Internet, let you order movies, let you play and record digital information including music and movies, control your appliances, manage your e-mail, and generally become the centre of your wired life.

Wireless
This aspect of technology has seen many developments over the past decade and has spurred competition and consolidation. Western Europe has a well - developed telecom infrastructure built up by state controlled telecom companies who came before them. Those very companies, which have become privatised, are now benefiting from this infrastructure.

But this landline-based technology can only go so far in satisfying the current developments in telecommunications. Wireless technology has come around promising no wires with remote access to services. Developing countries who are starting to build their telecom networks for the first time are finding it cheaper to build wireless infrastructures than to dig up roads, erect poles, and string cables.

This growth in wireless communications is encouraging companies to pursue partnerships or merge with operators in other countries so that they will have a bigger area to exploit. By increasing the reach of their wireless network, companies can keep customers on a single network without them having to sign up with another one abroad or incur roaming fees.

Satellite
Satellite communication is finding it hard to get off the ground, literally. It has been an important development in its own right and has been used for data transfer, TV and video broadcasting and mapping systems for ships, planes and cars. But the vast expense of sending up satellites into space and the risks involved, have led to companies moving away from it. Digital technology has caught on now and is seen as a more effective and cheaper way of operating. A recent billion-dollar rescue package of ICO Global Communications to save it from bankruptcy shows that there are still people who believe in satellite technology.

Cable
The UK cable industry has increased its presence significantly over the past 10 to 12 years. After the privatisation of BT and the success of satellite TV, US cable companies saw a market in the UK to exploit. In the early stages it was an alternative to satellite broadcast for people who lived near a cable network.

In today's climate, it is more than an alternative to the telephone. The technology enables people to watch more TV channels, link up to the internet and do both on interactive TV. The major players include Cable and Wireless Communications, NTL and Telewest.

Internet Service Providers (ISPs)
The likes of AOL and Freeserve are ISP's, who make it possible for you to go online and access the information superhighway. It is via companies like these that we will have access to the ever-evolving world in which voice and data networks converge.

Manufacturers
Networking Equipment and Fiber Optics Manufacturers
Things like local area network (LAN) relies on networking equipment, which enables it to be operative, including routers, hubs, switches, and servers. Fiber optics consists of the optical fiber and fiber optic cable, transmitters, receivers, and connectors that carry data and voice messages. The biggest switch makers are Nortel and Lucent. With Cisco and 3Com the biggest makers of networking equipment.

Wireless and Satellite Communication Equipment Manufacturers
These radio-based communications systems. Large players in wireless equipment include Motorola, Qualcom, Sony, and NEC. Satellite communication equipment makers include Comcast and Loral Space.

Job Prospects
You must remember that the telecommunications industry is massive. 60 per cent of the staff work in non-technical arenas, such as Sales and Marketing. The remaining 40 per cent make up the technical backbone that drives the industry forward to meet the expectations of clients and countries.

The imminent rise in high-speed data services, voice communications over the Internet, and data networks will all mean more R&D competition and, as leaders emerge, consolidation. If you want an industry that's going to require you to learn fast and adapt quickly, this is it.

Qualifications
Telecommunications crosses over into other sectors such as IT. So, qualifications ranging from a BSc in electrical engineering and telecommunications to design orientated qualifications, will all be relevant when applying for the wide-ranging jobs in telecommunications.

Typical roles include:

  • Product Management
  • Project Management
  • Software / Applications Engineer
  • Technician, General
  • Telecomm, General
  • Analyst
  • Engineer
  • Field Technician
  • Test Engineer

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