INTRODUCTION & BACKGROUND
Telecommunication has long been recognized as the engine for economic growth (Afullo, 1999). Telecommunication is not only a dynamic growth sector itself, but it is also the backbone of development and economic growth in other sectors of the economy. The telecommunication market is one of the largest markets in the world, second only to the financial services market (McLarty, 1998). As service businesses have become more international, telecommunication services are rapidly internationally growing and are the fastest growing part of international service trade (Gronros, 1999). In addition, telecommunication is an important infrastructure of other international businesses. Thus, telecommunication services art: significant in driving globalization and reducing costs of international trade (Clark and Rajaratnam, 1999). The increasing growth of international telecommunications and the importance of the telecommunication business in the current global economy have stimulated research into the telecommunication business. However, there is still little research in the telecommunication area. Likewise, there is little research that examines how telecommunication expands overseas. This paper studies entry mode choice of the telecommunication business. The purpose of this study is to examine the entry mode behavior of telecommunication companies. This study is based on the entry mode framework in the article “Internationalization strategies for service” (Gronroos, 1999). In addition, to study how telecommunication companies choose their entry modes, the analysis is based on the internalization theory developed by Buckley and Casson (Buckley and Casson, 1976). As for the study methodology, this paper will be a conceptual study, using qualitative information. The paper will be organized into three sections. Section I presents telecommunication background including definition and classification of telecommunications, telecommunication services, telecommunication development, international expansion, and the role of telecommunications in global business. Section II discusses literature review of entry modes and demonstrates entry modes in telecommunication industry. Finally, in section III, the conclusion of the study, trends in telecommunications and recommendations are discussed.
Telecommunication is communication at a distance by technological means, particularly through electrical signals or electromagnetic waves. TYPES OF TELECOMMUNICATION MODES
1. Telegraph and telephone
2. Radio and television
3. Video telephony
5. Computer networks and the Internet
TELEGRAPH AND TELEPHONE
Experiments on communication with electricity, initially unsuccessful, started in about 1726. A practical electrical telegraph was proposed in January 1837, it was considered an improvement on the existing "electromagnetic telegraph"; an improved five-needle, six-wire system the commercial use in 1838.Early telegraphs used several wires connected to a number of indicator needles. Morse successfully demonstrated a system on September 2, 1837. Morse's most important technical contribution to this telegraph was the simple and highly efficient Morse Code co-developed with his associate Alfred Vail. The first permanent transatlantic telegraph cable was successfully completed on 27 July 1866, allowing transatlantic electrical communication for the first time. The first transatlantic telephone cable (which incorporated hundreds of electronic amplifiers) was not operational until 1956, only six years before the first commercial telecommunications satellite, Telstar, was launched into space. The conventional telephone now in use worldwide was first patented by Alexander Graham Bellin March 1876. That first patent by Bell was the master patent of the telephone, from which all other patents for electric telephone devices and features flowed. The first commercial...
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