Skip to main content

Results of Growth-Oriented Telecom Policies

According to a new report from Research and Markets, in recent years there has been a sea change in the role played by the local copper wire loop that links the phone service subscriber to the telco operator's exchange.

Through the local loop, the subscriber can now make phone calls, access the Internet, watch pay-TV, and use video-on-demand services over a single telephone line. The local loop has thus become a fundamental element in the market for telecom services. European regulators clearly understood the economic significance as they enacting policies that have created one of the most open, competitive, and technically advanced, communications and entertainment service markets in the world.

Most of Western European countries started to unbundle the local loop in 2000-2001. By making it compulsory for incumbent telecom operators to offer third parties access to their local loop at a cost-oriented price, unbundling was expected to foster competition in telephone services and in Internet access via DSL. This measure was based on the recognition of the local loop as an "essential facility" that is difficult to duplicate.

It appeared all the more important in that there was previously little infrastructure competition in the broadband market (DSL, cable, FTTx) in the majority of European countries. After a slow start, the pace of unbundling began to speed up considerably in mid-2004.

Recourse to unbundling has now become one of the chief points of focus in the growth strategy adopted by operators and Internet service providers (ISPs) within the rapidly evolving broadband markets of Europe. It enables them to differentiate their offerings and roll out new options -- especially in regard to triple-play services.

In contrast, in the U.S. the FCC has reversed prior unbundling policies that would have enabled the country to catch up with the advances in leading global broadband markets. As a result, the FCC's systematic and intentional return to a closed duopoly of 'managed competition' has significantly contributed to comparatively higher-prices and fewer provider choices in most U.S. markets.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent