Telecommunication

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TELECOMMUNICATION

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,

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