In the communication industry, many things are happening around the world. For businesses involved in the industry, now is an especially important time to pay attention to current events. As seemingly everyone the world over uses some kind of communication technology, even in lesser developed countries, many of these events will impact everyone in some way whether involved with the industry or not. Let’s look at a few events in the world and take a look at how effects could trickle over the rest of the world.
Many of the topics are presenting themselves for select companies as well as entire groups. A few occurrences surfaced this week that will have worldwide impact in addition to affecting the immediate area where these events took place.
Telecom in Canada
We may as well start with Canada because it has been such a hot topic in telecom over the past couple of months. With the threat of the potential new service provider, Verizon Wireless, the big three telecoms Bell, Rogers and Telus had been in complete dishevelment. Fortunately for executives and stakeholders, this threat has subsided.
Verizon has stated that it no longer plans to enter the Canadian market space, a venture which has shaken telecom in the country. Now that Verizon has opted to not seize the opportunity, questions are floating around for many (like us!) who were following the possible entry into the market.
What will happen to the 700 MHz band? Will companies lower prices though no formal agreement was made to better serve Canadian customers? Why would Verizon not grasp such a seemingly profitable venture?
It appears a few changes will be on the way to Canada, though nothing will be immediate or drastic, at least for the moment. The larger providers will be able to share the new mobile spectrum which will ultimately benefit the consumer because of the range and penetrating ability of the frequency range. Seeing as how profits are trickling back to all the companies – stocks are up from 3 to 7 percent for each of the big three – it’s obvious the companies will make a quick recovery from the losses experienced since June. However, prices for service won’t magically drop. If customers want lower prices, they will need to fight the companies or support smaller companies like Wind Mobile, MTS or SaskTel.
Verizon in the US
For Verizon to walk away from a lucrative setup in Canada, a good reason would have to influence this decision. Verizon will be taking on a new mission to become its very own company. This new state of existence could change some things not just in America, but for other countries as well.
Verizon has long since been partnership with globe-spanning Vodafone which owns 45% of the company. Verizon is planning on buying out Vodafone from their ownership in the company so it would own the entire organization. Vodafone has accepted the deal for $130 billion which should transpire in early 2014.
Vodafone, now losing a large profitable partnership, will be taking on a new venture in Europe. They will be purchasing Germany’s largest cable provider, Kabel Deutschland. Now disembarked from Verizon, AT&T has set their eyes on the company and has suggested purchasing it.
As Verizon will now be much more profitable, AT&T will want to keep an edge against competition. AT&T was previously unable to purchase either company because it could be considered a monopoly after such a large acquisition. Nothing legal can prevent AT&T from purchasing Vodafone so it will be interesting to see if they take the bait.
Telecom in Brazil
The activities of the NSA have caught the attention of people the world over. Because so much data traverses the US, many governments are questioning the activities of the US government such as how it is acquiring data and why there is such an interest in the activities of citizens in other countries aside from the stated reason of safety.
President Dilma Rousseff of Brazil has taken action by launching an investigation on national telecom companies along with the National Telecommunications Agency, Anatel. In a recent interview with The Guardian’s Glenn Greenwald, it was revealed that the US has been spying on several countries which is causing tensions all over the globe. Brazil, in particular, is not happy.
During this dilemma, people are being targeted to prevent further information from becoming public. A Brazilian citizen by the name of David Miranda was detained for 9 hours in the UK who was believed to have information on the NSA leak. Actions such as these have upset Brazilian administration and now the Brazilian president may cancel his US visit next month.
Hopefully, some of the negative situations will pan out and resolution will be reached in this matter. For the sake of businesses like AT&T who could purchase Vodafone, the issues with the NSA could prevent American telecom from engaging in global business. It would be best if the US would address these issues and find a way to collect needed information without imposing on the rights of people on American soil as well as the people of other countries.