Ethical Issues in Telecom Sector

Topics: Regulation, Monopoly, Mobile phone, Market failure, Administrative law, Marketing / Pages: 25 (6153 words) / Published: Jan 19th, 2011
Business Ethics & Corporate Governance
Identification of Non Market Forces Impacting the Telecom Sector

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The Telecom Sector is going through a phase of phenomenal growth in India and the number of mobile manufacturers has been increasing rapidly, particularly in the last one year. The number of homegrown telecom manufacturers has grown up rapidly starting new phase of low cost handsets. starting Companies like Micromax and Maxx mobiles have given tough fight to the majors like Nokia and Samsung in the low cost handset markets which these biggies have failed to counter back. The major reason why these home grown companies have been winning against their global counterparts is mainly on cost and features. These companies import the handsets cheaply from China, brand them on their names and sell into the market at cheap prices. The major reason why these home grown companies have been able to deliver cheap handsets is due to their ignorance of the handset radiation regulation set standards. The global companies need to follow the set standards of global radiation emissions while these companies typically violate all such standards causing hazards to the consumers who use such handsets. Each mobile handset manufacturer and telecom operator has to follow the internationally laid guidelines for the regulations from the mobile equipment. At the same time the global companies spend a chunk of their revenues in R&D thus companies developing products which are more consumer friendly and causes minimum hazards on the users. Similarly at the same time the Telecom operators have to keep investing in technology up gradation so as to minimize the radiation emissions. Each operator has to follow the guidelines laid by the ze governing bodies and rollout services across the nation. Example, the 3G services has to be rolled out by each operator in the circles where it has been allotted the spectru within a fixed span of spectrum time.

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