International call Essay

Published: 2020-02-21 20:52:06
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Regulations have been passed all over the world regarding the price of international phone calls. In the year 2006, 6 European mobile phone operators have agreed to slash the international roaming wholesale price in s bid to lower the roaming prices (Meller, 2 June 2006). A regulation has become necessary to meet the needs for a lower roaming price and still maintain profit in the business. In the month of June 2007, a regulation has been passed by the European Union to reduce the amount of international calls. The European Union had made that it would cost people 50 pence to ?

1 to make a one minute phone call overseas. The subscriber must also pay to receive a one minute call unlike the UK where you pay when you make one minute call only. August 2007, the mobile phone companies were required to explain the new regulation, where a charge of less than 49 Euro cents per minute to make a call and 24 cents per minute to receive a call (Ofcom, n. d. ). The regulation causes the telephone companies to lower the price and at the same time look for cheaper technology that could lead to a lower type of service quality. Evidence of this claim had been shown in the Business week (April 2005).

It had been stated in the article that customers may love a very affordable price for international calls. However, Mike Collins (2006) had stated in his article that the lowering of the international calls maybe at the expense of domestic calls. The lowered price from the international call maybe shouldered by the domestic call and this put the industry at jeopardy since there would be an increase in the local calls. Based on an article from TeleGerography (1999), the success of Europe in implementing price declines had increase the number of call volumes all over the United States.

This had brought about stiff competition among the telephone companies. New entrants had been able to gain the market share of the older companies in the industry. An example of which is the significant decrease of international minutes from AT&T and MCI Worldcom. Call volumes had increased at the risk of reducing profits of the telephone companies. If a particular regulation had been approved by the telecommunication industry and had been applied to the country, there would always be companies who would be affected by the change.

As stated above, the regulation of lowering the price of international phone calls had been reduced in Europe. Word had been spread about the volume of international calls in minutes had a significant increase, other countries had followed suit. This only means that the changes in the industry had been adapted by other countries as well. Of course, if there had been risks in Europe, then there are also risks that could be experienced by the particular place that had tried to follow the example of Europe.

The risk of increasing the cost for domestic calls, and the risk for the older companies to be left out of the market share also can happen if the regulations for pricing had been implemented in another place. Webb and Associates (2007) had stated that billions of dollars is needed in order to maintain a telephone communication company. In the 1990s as per Insight Corporation (2007), a trillion dollars had been fixed in the industry during the tech bubble. By the year 2000, there have been big preparations for the Y2K Bug, plans for the future and the Internet.

Telephone companies such as Verizon and AT&T is already in the market. The DSL Broadband had been introduce and thus, this has become a regular service for homes and small businesses that needs the internet. There have also been disasters in the market such as the withdrawal of the application of Verizon to Massachussets residents and companies. There have also been a time during this year that the companies HarvardNet and Digital Broadband are not able to keep-up with the price of the DSL providers. This had resulted into the companies stopping their DSL services. The mobile phone had also began to be known.

In the year 2003, the industry started its stiff climb. The proponents of the study agree that the industry is still in the growth stage because more and more improvements and technology is being produced and can be considered in the industry as a new product. Several strategies had been done by the telephone companies in order to stay competitive in the market. One is the offer of a lower price but the same service tactic. This is usually done by the existing telephone companies wherein they offer lower rates to get the attention of the buyer and thus patronize their network.

Another strategy that the telephone companies do are the innovation of new technology that can be used. If a particular network had released something in their promotions like unlimited SMS messaging, other companies would follow suit because the telephone companies would like to maintain their market share. As the proponents had stated earlier, it is very easy to enter the industry if a person has the money and the right idea to market their network to the potential subscribers.

BIBLIOGRAPHY Meller, P. (6 June 2006). Mobile Operators cut Roaming Prices. IDG News Services. Available at [ Accessed 27 February 2008] Ofcom. (2007). Cost of using your mobile phone abroad. [Internet]. Office of Communications. Available at [Accessed 27 February 2008] Collins, M. (2007).

Summer roaming mobile cut-price calls put at risk by tiff [Internet]. Your Money. Available from: [ Accessed 28 February 2008] Business Wire. (2000). New Carriers Win International Telecom Market Share; Worldwide Call Volumes Grow 13%.

[Internet]. Liverpool. Cnet Networks Inc. Available from [Accessed 28 February 2008] Webb & Associates. (2008). The 2000s (The 21st century begins). [Internet] Available from: < http://www. webbconsult. com/2000. html> [ Accessed 28 February 2008] The Insight Research Corporation. (2008). The 2003 Telecommunications Industry Review: An Anthology of Market Facts and Figures. [Internet], Telecom Market Research Corp. Available from: http://www. insight-corp. com/reports/review03. asp [Accessed 28 February 2008].

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