Telecom and technology Industry within BRICS countries
The telecoms and technology industry throughout the world is steadily growing and increasing profits and revenues. Within the BRICS countries the industry’s success varies with the shifts in the economy, social and political factors, and consumer attitude. Most in importantly the performance of the industry has to take into account the various infrastructures in many of the unindustrialized areas in BRICS countries. The presence of the telecoms and technology is vital because together the BRICS countries make up “2.8 billion people or 40 percent of the world’s population, cover more than a quarter of the world’s land area over three continents, and account for more than 25 percent of global GDP.”(Global Sherpa, n.d)
The progress of the telecoms and technology industry in Brazil indicates that be successful, with 259 million subscribers they are the fifth behind China, largest mobile telephony market. They’re growth in the industry has already outpaced the GDP. The industry is doing well within the country, as Brazil is “by far the largest information technology (IT) market in Latin America and one of the largest among emerging-market economies.”(EIU, 2012) In China the telecom and technology industry is doing even better, with the second largest mobile telephony market only behind the US. The advantages and disadvantages in the industry is that, “China’s dominant manufacturers of telecommunications equipment, Huawei and ZTE, are already global leaders but will continue to face mistrust in developed markets.”(EIU, 2012) The progress in India is booming, India is becoming on the leaders in technology, and constantly adding changes to their infrastructure. “The government is striving to connect India’s vast rural population, as well as its own district offices, to the telecommunications network. Mobile-phone operators will continue to expand rapidly into rural India.”(EIU, 2013) Their forecasted expenditures though are estimated to reach in the billions, with regard to the many corruptions. In Russia, the industry is more constrained, as the government heavily regulates the industry. The IT spending is half compared to Germany and risked being left behind without policy changes.”
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If we look at the comparative market size by 2016 we can find that China would certainly still be the strongest of the BRICS countries, in terms of the market size. If we look at the data from EIU website, by 2017 the number of broadband subscriptions will rise to .0315 million in Brazil, 32.8 billion in Russia, 43.8 billion in India, 328.4 million in China, and .0024 in South Africa. Compared to the present data in 2013, Brazil has 216.7 million, 24.1 million in Russia, 43.8 million in India, and 216.7 billion in China for the year 2013. (EIU, 2012) This comparable data indicates that China’s residential broadband market will continue to grow, China is the leader ahead of all the other BRICS countries, with India the second position. The economies in each country are still growing, however Russia’s growth is ebbing faced with strict regulations to their industry, a change in policy and resources will help Russia’s economy boom.
The information of the growth of broadband subscriptions doesn’t change the assessment of the view of BRICS position in the world’s market, due to the fact, that all the BRICS countries remain in the same order of economic growth, China being first with huge market, population, growth in GDP, India following behind with development changes in their infrastructure helping in the industrialized areas. Brazil is constantly changing and climbing higher in the global market. Russia is stagnating as their growth is fueled by external factors. Each share a huge part of the global market and are ahead global.
Comparative market data:
Faster-growing markets represent a major structural opportunity for broadband sector, which we believe is still not fully understood by investors. Investors are starting to recognize that there is a significant secular shift in the size of telecom markets around the world, but the magnitude of the change is not fully understood, particularly when looking beyond China. In the next two year, countries like China, India, and Brazil will substantially outgrow their mature economies in terms of aggregate broadband subscriptions. By 2016, China will be the second largest ad market in the world, Brazil will have grown from fifth and India from 14th to seventh, with far-reaching implications for broadband internet market.
Considering the future market we can say that Verizon has a strong growth strategy with which provides the company with a strong growth perspective with mass market promotion of services in the emerging markets of the BRICS, particularly South Africa, India and Chinese markets. Verizon should also try to expand through acquisitions, may it be cross border acquisitions. Cross border acquisition will give it an opportunity of fast growth. Verizon is increasing profit capability by expanding into emerging markets which is making profits in an ailing economy, however will not like to make additional investments in the same country. A common business strategy that has proven to be success is for Verizon to invest resources in capturing market share. It makes a perfect business sense for a firm like this emerging economies, which would offer faster growth rate.
Comparative Growth:
Considering the comparative growth in the absolute term and percentage term of broadband subscription services we can see that all the countries of BRICS have high growth as compared to the mature and developed market of telecom industries in the broadband subscription sector. All the countries have potential growth for the telecom sector.
Through the end of the last decade, broadband internet industry focus was directed more on building digital capabilities, and redirection of its revenue mix toward faster growing markets. Management is now concentrated on turning China into one of its top markets, and to this end recently conducted a full strategic review of its operations there. Considering the growth of the BRICS countries we can say that there is a tremendous growth for different sectors in these countries.
- Brazil: Telecoms and Technology.(2012). EIU. Retrieved from http://viewswire.eiu.com.ezproxy.umuc.edu/
- BRIC Countries – Background, Latest News, Statistics and Original Articles.(n.d). Global Sherpa. Retrieved from http://www.globalsherpa.org
- China: Telecoms and Technology.(2012). EIU. Retrieved from http://viewswire.eiu.com.ezproxy.umuc.edu
- India: Telecoms and Technology.(2012). EIU. Retrieved from http://viewswire.eiu.com.ezproxy.umuc.edu
- Russia: Telecoms and Technology.(2013). EIU. Retrieved from http://viewswire.eiu.com.ezproxy.umuc.edu
