Telecommunications is defined as any transmission, radio, sound or intelligence of any nature by wire, videos images, text, signals, emission or reception of signs, optical or other electromagnetic systems. In other words, it encompasses any communication over distance through telephone, television, radio, network, or other means. The industry encompasses voice, video (TV), and data services provided over wires, over the air (wireless), and via cable and satellite.
Telecommunications is an extremely fascinating and fast-paced industry that affects every aspect of human life. The importance of telecommunication services is undeniable. It has created unprecedented opportunities for all the people of the world to be informed, entertained, and be connected with each other. It enables the coordination of activities between spatially separated people, bridges cultural gaps, enables resources to be available when and where they are needed, and contributes significantly to improved efficiency in virtually every industry.
The telecommunications industry has experienced enormous growth around the world during the last decade because of technological developments and deregulation policies. It now touches more lives around the world than any other services industry. Today, the world has over 2.9 billion mobile connections, 1.85 billion fixed lines, and more than 1 billion Internet and Cable/Satellite TV users.
On the other hand, the telecommunications industry has also seen radical shifts and upheavals. The shift from wireline to wireless, circuit-switched to packet-switched networks, narrow band to broadband, and the impending dominance of IP technology are all having a profound impact upon the structure and contours of this industry. In addition, the boundaries between telecommunications, media and entertainment services are blurring, thereby forcing telecommunication companies to rethink their strategies. The entire telecommunications business model is changing from providers offering a single service, such as a wireline phone company providing just a basic voice service, to one of collaboration between different players in order to provide a comprehensive range of services.
During the last decade, the telecommunications industry has grown faster than the overall economy in almost all countries around the world, and represents a significant share of GDP. The annual worldwide turnover from the telecommunications business was US$3.2 trillion in 2007, and is estimated to be worth over US$4 trillion by 2010. However, the real impact of telecommunications is that it has transformed the way individuals, businesses and other parts of society work, communicate and interact. Different macro-economic and firm-level studies confirm higher productivity gains where good telecommunications infrastructure exists.
The economic impacts of telecommunications are enormous. Studies conducted by the UN’s International Telecommunication Union (ITU) have demonstrated that there is a close relationship between telecommunications and economic development in every country. Another report by ITU/OECD (Organization for Economic Cooperation and Development) stated that investments in telecommunication facilities generate reciprocal investment in trade, industry and agriculture at a rate that averages four times the level of investment in telecommunications itself. This factor is even more significant in developing countries, especially in Asia, Latin America and Africa, where telecommunication facilities are rapidly growing.
The social impact of telecommunications on the developing world is perhaps even more dramatic than in advanced nations. The provision of the first telephone in a village or a community has a much greater multiplier effect on economic development than the investment cost of providing that line. Globalization and outsourcing enabled through telecommunications has helped spread economic benefits to different parts of the world. This has tremendously benefited billions of people in their struggle to earn livelihood. Internet and other means of communication are not only the main source of information during catastrophic natural disasters like tsunamis and earth quakes, but also have successfully channeled much needed help to the needy.