INTERNATIONAL BUSINESS REPORT

International Business Report: Telecommunication Industry

International Business Report: Telecommunication Industry

Introduction

Mobiphone is a UK-based telecommunication company, which has globally expanded its businesses in various developed countries of the world. Over the years, Mobiphone has tried to reach out to its customers in real time, brining out advanced and appalling products in the communication sector to create a hallmark in the contemporary competitive world of enterprises. Mobiphone has always offered robust technology to its customers to win their satisfaction. For this reason, Mobiphone has achieved a global recognition in providing quality service to its customers and bringing out more innovative production to cope with people's communication needs (Burnes 1992, Pp.75-78)

As aforementioned, Mobiphone is successfully operating in many developed countries like the United Kingdom, which is its country of origin; the United States, Germany, Canada, France, Spain and the Netherlands. Recently however, the company has intended to launch its operations in India for being the second most populated country in the world and a potential successful market for Mobiphone.

This intention of the company is a serious one as there are number of pros and cons in investing in a developing country. There is certain significant consideration that Mobiphone has to look into. These considerations include the business environment, technological and organizational change, foreign investment policy and, the concepts regarding the cultural and national aspects in business literature based on differences in culture of both the countries. Other areas to be considered include the trends and pattern of trade that exists between UK and India. Moreover, the exchange rate risks which countries face when investing in other countries have to be taken into account as it is a very important aspect of trade. The type of export or a foreign direct investment has to be pondered over too. Last, the kind of political risks which Mobiphone could come across in India. As well as the significances for Mobiphone and the directions which could bring down the dangers involved?

Telecommunication Industry of India

The Indian telecom industry is the fastest in the world of the telecommunications industry more and more, with 742.12 Million telephone (fixed and mobile) subscribers and 706.69 million mobile phone connections October 31 2010 It is also the telecommunications network in second place worldwide in terms of number of wireless connections after China.The Indian mobile subscriber base has increased in size by a factor of more than one hundred since 2001, when the number of subscribers in the country was about 5 million millionto 706.69 in October 2010.As the telecommunications industry the fastest growing in the world, it is expected that India will have 1.159 billion mobile subscribers 2013.Furthermore, projections by several large global firms indicate that the total number of subscribers in India will exceed the total number of subscribers in China by 2013.The sector is expected to reach a size of 344,921 crore (74.85 billion U.S. dollars) by 2012 at a growth rate of over 26 percent, and generate employment opportunities for approximately 10 million people during the ...