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Telecommunication is the transmission of messages, over significant distances, for the purpose of communication. In earlier times,
telecommunications involved the use of visual signals, such as smoke, semaphore telegraphs, signal flags, and optical heliographs, or audio
messages via coded drumbeats, lung-blown horns, or sent by loud whistles, for example. In the modern age of electricity and electronics,
telecommunications has typically involved the use of electric means such as the telegraph, the telephone, and the teletype, the use of microwave
communications, the use of fiber optics and their associated electronics, and/or the use of the Internet. The first breakthrough into modern electrical
telecommunications came with the development of the telegraph during the 1830s and 1840s. The use of these electricalmeans of communications
exploded into use on all of the continents of the world during the 19th century, and these also connected the continents via cables on the floors of the
ocean. These three systems of communications all required the use of conducting metal wires. A revolution in wireless telecommunications began in
the first decade of the 20th century, with Guglielmo Marconi winning the Nobel Prize in Physics in 1909 for his pioneering developments in wireless
radio communications.
Telecommunications play an important role in the world economy and the worldwide telecommunication industry's revenue was estimated to be $3.85
trillion in 2008. The service revenue of the global telecommunications industry was estimated to be $1.7 trillion in 2008, and is expected to touch $2.7
trillion by 2013.
History
Early telecommunications
During the Middle Ages, chains of beacons were commonly used on hilltops as a means of relaying a signal. Beacon chains suffered the drawback
that they could only pass a single bit of information, so the meaning of the message such as "the enemy has been sighted" had to be agreed upon in
advance. In 1792, Claude Chappe, a French engineer, built the first fixed visual telegraphy system (or semaphore line)
between Lille and Paris. However semaphore systems suffered from the need for skilled operators and the expensive towers at intervals of ten to
thirty kilometers (six to twenty miles). As a result of competition from the electrical telegraph, the last commercial semaphore line was abandoned in
1880.
Key concepts
A number of key concepts reoccur throughout the literature on modern telecommunication systems. Some of these concepts are discussed below.
Basic elements
A basic telecommunication system consists of three primary units that are always present in some form:
A transmitter that takes information and converts it to a signal.
A transmission medium, also called the "physical channel" that carries the signal. An example of this is the "free space channel".
A receiver that takes the signal from the channel and converts it back into usable information.
For example, in a radio broadcasting station the station's large power amplifier is the transmitter; and the broadcasting antenna is the interface
between the power amplifier and the "free space channel". The free space channel is the transmission medium; and the receiver's antenna is the
interface between the free space channel and the receiver. Next, the radio receiver is the destination of the radio signal, and this is where it is
converted from electricity to sound for people to listen to.
Sometimes, telecommunication systems are "duplex" (two-way sytems) with a single box of electronics working as both a transmitter and a receiver, or
a transceiver. For example, a cellular telephoneis a transceiver. This can be readily explained by the fact that radio transmitters contain power
amplifiers that operate with electrical powers measured in the watts or kilowatts, but radio receivers deal with radio powers that are measured in
the microwatts or nanowatts.
Telecommunication over telephone lines is called point-to-point communication because it is between one transmitter and one receiver.
Telecommunication through radio broadcasts is called broadcast communication because it is between one powerful transmitter and numerous low-
power but sensitive radio receivers.
Telecommunications in which multiple transmitters and multiple receivers have been designed to cooperate and to share the same physical channel
are called multiplex systems.
Impacts:-
In cultural terms, telecommunication has increased the public's ability to access to music and film. With radio and the Internet, people can listen to
music they have not heard before without having to travel to the music store.
Telecommunication has also transformed the way people receive their news. A survey by the non-profit Pew Internet and American Life Project found
that when just over 3,000 people living in the United States were asked where they got their news "yesterday", more people said television or radio
than newspapers. The results are summarised in the following table (the percentages add up to more than 100% because people were able to specify
more than one source)
Telecommunication has had an equally significant impact on advertising. TNS Media Intelligence reported that in 2007, 58% of advertising expenditure
in the United States was spent on mediums that depend upon telecommunication.[39] The results are summarised in the following table.
Syndicated
Internet Radio Cable TV Spot TV Network TV Newspaper Magazine Outdoor Total
TV
Percent 7.6% 7.2% 12.1% 2.8% 11.3% 17.1% 18.9% 20.4% 2.7% 100%
Dollars $11.31 billion $10.69 billion $18.02 billion $4.17 billion $16.82 billion $25.42 billion $28.22 billion $30.33 billion $4.02 billion $149 billion
Important News:-
• 16.92 Million new Mobile Subscribers added in July – Tele-density reaches 58.17 percent.
• Business Buzz: Starry GDP Growth, Nokia dual Sim mobile launch, Google Skype in Trouble now…
• Nokia launches Dual Sim Mobile phones to stave off competition from local Indian mobile phone brands.
• Indian female Mobile Web usage lowest in world! [Opera Report]
• Bharti Airtel’s first Salvo – Slashes Tariff rates by half in Kenya! And the Minute Factory has just started ticking…
• Bharti Seals Zain Deal to Fulfill its African Dreams
• New players entering rural markets:
• C Circle usage higher than A/B circles
• Prepaid tariff’s 40% lower than Postpaid
• Multi-Sim usage is hitting the industry
• Top 15 Telecom Companies in World – Bharti Now 5th !
• Airtel enters the elite club of top 25 telecom companies
• Bharti Airtel Gets The Green Signal For Warid telecom Stake
• Bharti Airtel now enters cloud – Ties up with LimeLight to setup CDN in India
• Telecom Subscribers, 3G auction, Airtel Talkies, free calls and lot more
• Reliance Communication To Raise 6300 crore, scale its wireless and Enterprise Business
• Bharti Airtel bitten by the conglomerization bug – 9 new verticals !
• Mobile Internet Users grow 245% [India] – Facebook becomes most popular mobile social network [global] – Report
• Enjoy ISD calls to US and Canada at 1paise per second with Vodafones E Top Up 59
• Tata DOCOMO introduces CREATE CELEBRATIONS platform
• Cisco hands over more than 500 houses to the Government of Karnataka in Raichur
• Wynncom all set to launch India’s first Hindi QWERTY Keypad phone
• Bharti Airtel and National Geographic Channel begin the hunt for ‘Young Explorer’!
• Bharti Airtel achieves Gold Certification from Cisco India
Economy Analysis:-
GDP GROWTH:- The GDP growth rate is driven by retail expenditures, government spending, exports and inventory levels. Rises in imports will negatively
affect GDP growth. The GDP growth rate is the most important indicator of economic health. If GDP is growing, so will business, jobs and personal income. If GDP
is slowing down, then businesses will hold off investing in new purchases and hiring new employees, waiting to see if the economy will improve. This, in turn, can
easily further depress GDP and consumers have less money to spend on purchases. If the GDP growth rate actually turns negative, then the U.S. economy is heading
towards a recession. The Gross Domestic Product (GDP) in India expanded at an annual rate of 8.80 percent in the last reported quarter. From 2004 until 2010, India's
average quarterly GDP Growth was 8.37 percent reaching an historical high of 10.10 percent in September of 2006 and a record low of 5.50 percent in December of
2004.
Fiscal Policy:- In economics, fiscal policy is the use of government expenditure and revenue collection to influence the economy]
Fiscal policy can be contrasted with the other main type of macroeconomic policy, monetary policy, which attempts to stabilize the economy by controlling interest
rates and the supply of money. The two main instruments of fiscal policy are government expenditure and taxation. Changes in the level and composition of taxation
and government spending can impact on the following variables in the economy:
Aggregate demand and the level of economic activity;
Inflation:- The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop
severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum. When the price level rises, each unit of currency buys fewer
goods and services; consequently, inflation is also an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of
account in the economy. Currently inflation rate is 13.73%.
Investors confidence index:- An indicator used to gauge investors' confidence based on how much they are investing in speculative grade of bonds. When
investors are more optimistic about the market, they tend to investin high-quality bonds, but when they are worried about the market they invest in lower-quality
bonds. This indicator is calculated by dividing the average yield on 10high-grade bonds by the average yield on 10 intermediate-grade bonds. The difference between
the two is used to determine investors' confidence.
Investor Confidence Index Falls from 96.5 to 92.1 in August.
FDI:- Foreign direct investment (FDI) refers to long term participation by country A into country B. It usually involves participation in management, joint-venture, transfer
of technology and expertise. There are three types of FDI: inward foreign direct investment and outward foreign direct investment, resulting in a net FDI inflow (positive or
negative) and "stock of foreign direct investment", which is the cumulative number for a given period. Direct investment excludes investment through purchase of shares.
(FDI) is a measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing
economic globalization.
FII (Foreign Institutional Investors):- An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing.
Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. Current news of FII :- As per data released by the Securities and Exchange
board of India (SEBI), FIIs invested US$ 2055.74 million in equities between July 1 and July 21, 2010, and US$ 1566.98 million in debt between the same period. Data sourced from
SEBI shows that the number of registered FIIs stood at 1713 and number of registered sub-accounts rose to 5,426 as of June 30, 2010.
Venture Capital Activities :- During the period September 2007 – April 2009, the financial services industry dominated the headlines and had a
disproportionate impact on the world we live in. Given the profound affect that the financial services industry has on all areas of the global economy, it is important to
understand this industry. This page is devoted to one particular area, corporate venture capital (CVC), sometimes called corporate venturing. It serves as a CVC Guide
covering the following three topics: 1) define CVC; 2) discuss how CVC is utilized in healthcare and technology; and 3) describe the process of soliciting CVC.
Current News “Venture Capital Activity Crosses $20B for 2009. Q4 2009 Sees $5.5B of Funding with Year’s Highest Number of Deals”.
P/E Ratio:- The P/E ratio (price-to-earnings ratio) of a stock (also called its "P/E", or simply "multiple") is a measure of the price paid for a share relative to the
annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net
income, so the stock is more expensive compared to one with lower P/E ratio. The P/E ratio has units of years,[note 1] which can be interpreted as "number of years of
earnings to pay back purchase price", ignoring the time value of money. In other words, P/E ratio shows current investor demand for a company share. The reciprocal of the
PE ratio is known as the earnings yield. The earnings yield is an estimate of expected return to be earned from holding the stock if we accept certain restrictive
assumptions.
Industry Analysis