Abstract
M.Ing.
The telecommunications industry worldwide is experiencing massive
downsizing activities as the mobile telecommunications market is flooded with
mobile operators. In Europe and other leading countries world wide, fixed line
operators are able to cover more than 90% of the population of the country
and there is not such a necessity for a mobile service as in a country such as
South Africa, where less than 50% of the population is connected to a fixed
line operator. Together with many investors, planning to create substantial
returns on investments saturated the communication market in these worldleading
countries.
When mobile data transfer, in the form of GPRS (General Packet Radios
Services) and UMTS (Universal Mobile Telecommunication System), was
developed it was estimated that the amount of mobile data transferred (via
mobile operators) per annum would exceed the amount of data transferred by
normal fixed line transport (fixed line operators). Many mobile cellular
operators worldwide have invested in these technologies but their ROI
(Return on Investment) is not nearly as good as was estimated in the initial
feasibility study of the technologies.
Together, these issues have had a negative impact on all the world leading
mobile communication infrastructure suppliers, which had to downsize to
accommodate the decrease in world business. Only 3rd world countries (such
as in Africa) are still expanding their mobile networks and are creating some
business opportunities for the world leading suppliers, but it is unfortunately
not sufficient to sustain the current business. With the initial roll out of GSM
(Global system for mobile communication) network infrastructure suppliers
could ask what they want for the equipment and services supplied, as these
were hard to imitate, but as the market grew, more competitors were able to
meet their standards in equipment quality and better the price and service.