THE UNIVERSITY OF ZAMBIA
SCHOOL OF ENGINEERING
DEPARTMENT OF ELECTRICAL AND ELECTRONICS ENGINEERING
NAME: Nash H Kabunda
PROGRAMME: M.Eng ICT
COURSE: EEE6511 (Telecoms Industry, Policy & Regulation)
TASK: Assignment 2
LECTURER: Dr. D. Banda
HISTORY AND EVOLUTION OF THE ICT INDUSTRY IN ZAMBIA.
The first telephone exchange to be placed in Zambia was installed in Livingstone in 1913. The telephone circuit backbone infrastructure was developed in the major Zambian cities along the so called “line of rail”. The ‘line of rail’ spans from Livingstone through Lusaka to Copperbelt provinces.
After the independence of Zambia in 1964, the country’s economy was based on socialistic principles until 1991. This means major
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The authority managed and granted licenses to organizations and individuals who met the prescribed conditions. CAZ, through the Radio communication Act managed the administration of the radio frequency spectrum.
Furthermore, the Telecommunications Act led to the splitting of the Post and Telecommunications Corporation (PTC) into two commercial entities: ZAMTEL and ZAMPOST. Zamtel managed the telecommunication services whereas ZAMPOST managed postal services.
Liberalizing the Zambian economy opened up the telecommunication markets for many players. This meant that telecommunication and postal services could not only be provided by Zamtel and Zampost. The introduction of competition in the telecommunication market provided for enhanced service delivery and innovation as the companies had to share the existing and growing customer base. However, fixed lines still belong to Zamtel and hence they maintained a form of monopoly in the fixed line business. The mobile phone market allowed other players to compete. The market became bigger with the popularity and accessibility of the mobile access devices.
The advent of mobile phones in Zambia led to a reduction in the fixed line tele-density. However, internet was still provided by Zamtel through its wired connections and microwave.
Other institutions such as banks and Zambia Electricity Supply Corporation used their own
Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone
The documentary “T Shirt travels” follows a young Zambian named Luka through his daily life as a second hand clothes seller. We are taken on a journey through the struggles and issues from both a micro and macro level. We learn about issues facing the country as a whole such as rampant poverty, to an economy destroyed by slavery and further setback due to larger nations dictating economic policy for Zambia. To the smaller scale with individual families such as Luka’s trying to make ends meet in a hand to mouth industry and shows how hard it is for them to succeed. The whole film gives us a deeper understanding of how Zambia is being
Telephone popularity saw an increase in the early 1900's. The telephone began to appear all over the place. The telephone began to be looked upon as a necessity, "By this time the telephone was settling into national consciousness as a fixed and permanent part of American life."2 The telephone allowed people to interact with other types of individuals, and this ability intrigued the American public. The telephone made it possible for contact to take place with people who normally can not because of being apart by large distances. People want to communicate quickly with others, and the telephone makes this happen. By this time the telephone was not a luxury good, but necessary for survival. Cities especially, saw the telephone as an essential part of society; "Literally telephone service is a life-and-death matter to the citizens of every urban community in America."3 Although the telephone was popular in cities, it was surprisingly popular in the rural Midwest. The telephone created a need to know what took place in the world. The Midwest was not as densely populated and the telephone developed an excellent way to communicate the news of the day amongst surrounding communities. Before, one would have to rely on the news spreading via word
Competing technologies With the rapid and unexpected developement of the cellular network, the Iridium technology became obsolete in areas covered by terrestrial mobile telephony. Although Iridium offered a GSM service for roaming into cellular networks, it was still more expensive than the regular cellular charge, so the target group shrank to people who were in the few regions not covered
In business, market structure plays an important role, which helps to shape the competitive landscape for businesses at all levels. Each business industry will naturally form a market structure that comes in numerous forms: Perfect competition, monopolistic competition, oligopoly, or monopoly. Verizon Wireless is a well-known communications company and large enough to affect the market. Oligopoly is defined as a market in which only a few firms dominate, and judging from Verizon competition there are only a few firms involve: T-Mobile, AT&T and Sprint. With only few competitors involve the barrier to entry is high, but there still lies a large pool of customers. The barriers are high because of the amount of money that has to into the infrastructure
The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies
Seats and individuals from commissions are named by the president and affirmed by the Senate to terms of settled length from which they can't be summarily released. Because regulatory commissions are "watchdogs" that by their very nature need to operate independently, they are not part of a department, and the President does not directly control most of them (ushistory.org). Regulatory commissions' independence was intended to take the legislative issues out of regulation. Be that as it may, "most regulatory commissions face united, strongly intrigued commercial ventures, and latent, divided, and extensive customer groups. Consider the Federal Communications Commission (FCC). It concedes licenses to radio and TV telecast frequencies in return for obscure guarantees to seek after "the general population interest." Broadcasters are very much sorted out, yet viewers and audiences are not; the FCC's strategies have favored business
In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price of an input regarded important and a decrease in the demand of mobile phones.
This essay seeks to critically analyze the statement that “Economic liberalism is a prerequisite for economic development in development economies.” This paper will begin by outlining the concept of economic liberalization and its effect on the development agenda for Zambia. An analysis of these experiences is then made in order to derive lessons regarding the linkage between economic liberalization and economic development. It will then draw the pros and cons; positives and negatives effects of economic liberalism in the Zambian economy and will finally conclude by establishing the way forward for developing
In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,
| * Politically stable, high telecom demand, 8-year tax exemption, telecom licenses in issuance * 80% phone lines and 71% payphone users concentrated in Dar es Salaam
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.
Oligopolistic Markets are less common, but still prevail in the modern economy. An Oligopolistic business is one with few competitors, basing its revenue off of “outsmarting” its opponents by analyzing their decisions and predicting the outcome. Having an analysis of an opponent provides the basis for Oligopoly, as income is based on providing a product that has more features than another product, released to the public around the same time. The Cellular industry provides a pristine example of the Oligopolistic Market.
This market allows organization a free long term ability to adjust their good services and prices with the changes in the market conditions. Thus AT&T should take advantage of the freedom in this market structure and ensure that their supply and prices are correlated to their demands.
MTN Zambia Limited is one of Zambia’s leading mobile phone operators offering superior network coverage and data services to consumers. MTN has invested large sums of money to ensure the evolution from basic voice calls and messaging services to include numerous innovative communication, content and entertainment services throughout the country. In 2013, MTN Zambia’s revenue contribution towards the group earnings was 51% of the Southern and East Africa (SEA) region consolidated revenue (MTN Group Corporate Affairs, 2013) .