N-GEN Communications Web-based Seminars ©NGCS

Seminar - An Overview of Communications Technologies

Module 1 - An Overview of the Communications Industry                                                                Slide 6 of 26 _________________                                                                                  __________

                                              Industry Landscape

                                        Too Many Advanced Technologies

                                        Service Choices for Customers

                                        Fed. Govt. determined to Foster Competition

                                        Local Competition Still to Come

_________________                                                                                  __________

The communications industry was spending considerable capital in the plant. The equipment manufacturers saw an opportunity to develop new technologies to expand the life of the existing copper and fiber facilities. WDM and xDSL increased the existing plants life and at the same time created the facilities glut. The telephone, cable and wireless companies developed the same services giving choices in the marketplace impacting each others revenues. The Federal Government succeeded in establishing  LD services and trying to find a way to foster competition in the local services.

Carriers have a choice of many new technologies (WDM, DWDM, xDSL, Cable Modem, wireless) to implement in their existing plant to improve its capability. Some of these technologies would have helped earlier before they deployed the fiber. 

Consumers also have choices of different carriers ( wire line, wireless, cable and satellite) for the services. For example a customer can have a connection to an ISP from a telephone company or a cable company. With the limited market for the services it is hurting every one's bottom line.

The competition in long distance is well established. The long distance calling rates have gone down as much as 70% and so have LD services revenues. Both residential and businesses have benefited from this.

The local market is dominated by the established companies. They own the plant. New players have to invest a lot of capital to compete in this market.