PESTLE Analysis of Telecommunication Industry. Telecommunication Industry deals with communication and information technology. Different telecommunication and internet service-providing companies collectively develop the telecom industry. However, they are an essential element of developing mobile communication and information society.
The Telecommunication Industry’s main products and services are as follows;
- Online communication like emails, messages, etc
- Quick internet access
- Fixed line telephone
- Broadband internet services
- Mobile network
- Interactive entertainment
Key statistical facts and figures about the Telecommunication Industry are as follows;
- The global telecom industry had a market share of 3041.8 billion US dollars in 2023
- Growth rate of the market share was 6%
- Market share would reach 3818.42 billion US dollars in 2027
The top companies in the Telecommunication Industry are as follows;
- China Mobile – China
- AT&T – USA
- Verizon Communications – USA
- Vodafone – UK
- America Movil – Mexico
- Telefonica – Spain
- Telstra – Australia
- Nippon Telegraph – Japan
- Deutsche Telekom – Germany
- Softbank – Japan
Today, we’ll discuss the PESTLE analysis of Telecommunication Industry. It is going to focus on the macro factors like political, economic, social, technological, legal, and environmental impacting the telecom industry. Here’s the Telecommunication Industry PESTLE analysis as follows;
Political Factors Impacting Telecommunication Industry
Some of the main political factors in the PESTLE analysis of Telecommunication Industry are as follows;
Government Regulation
The political environment of any country greatly impacts the Telecommunication Industry. Different political governments introduce new laws and regulations for the telecom industry; telecom companies have to comply with the changing regulations. For instance, the Canadian government has very tight and strict regulations for foreign ownership, and that’s why the country has expensive mobile and internet services.
Political Rivalry
Different countries have got political conflicts and rivalries and it impacts the Telecommunication Industry. For instance, Huawei is a Chinese consumer electronic manufacturing company and China has conflicted relations with the Western countries. Various countries have restricted Huawei’s in their network like the USA, Taiwan, Japan, New Zealand, and Australia.
Economical Factors Impacting Telecommunication Industry
Some of the main economic factors in the PESTLE analysis of the Telecommunication Industry are as follows;
Global Economy
The global economy is the main driving force for the growth and development of Telecommunication Industry. This is because the competitive environment brings investment for innovation in the telecom industry. The investment wouldn’t only increase innovation and productivity but also create employment opportunities for creative people.
Growth
Stable economic conditions have increased the standard of living of people. That’s why people are spending a significant amount of money and resources on luxury items like smartphones and electronic devices. As a result, it has amplified the usage of telecom services like the Internet for personal and professional use.
3rd Party Network
Nowadays, many telecommunication companies are outsourcing their network services to the 3rd party service-providing companies. It allows them to save their operational cost and other operational cost, and it helps them to pass down the discounts to their customers.
Social Factors Impacting Telecommunication Industry
Some of the main social factors in the Telecommunication Industry PESTLE analysis are as follows;
Social Connectivity
Telecommunication Industry plays a significant role in connecting people and bringing them closer to the society. People employ various modes of telecom like the internet, cable network, or mobile/cell phone in their daily routine life. All of these channels have become a main tool of interaction and communication among people.
New Trends
The Telecommunication Industry is growing at a rapid pace with the latest technological growth and development. Technology and the internet have transformed our lives to a great extent; people are employing laptops and smartphones for online transactions, paying bills, online shopping, sharing rides, and food orders.
Social Media
A vast majority of people are actively using social media platforms for social, entertainment, and business purposes and consuming telecom services. Internet connectivity has made the world a global village, and it allows you to connect with people worldwide regardless of your geographic location. In fact, social media has become a main part of their lifestyle.
Technological Factors Impacting Telecommunication Industry
Some of the main technological factors in the Telecommunication Industry PESTLE analysis are as follows;
Affordable Tech Services
The latest technological development has had a significant impact on the Telecommunication Industry. One of the main benefits of the internet and technology is that the cost of tech devices and the internet has decreased significantly over the past few years. You would have also observed the increase in the variety and quality of products and services.
5G
Various companies in the Telecommunication Industry have started providing 5G telecom services. It requires them to employ a wide range of mobile connectivity, infrastructure, and the latest technology. However, it would bring revolutionary changes in the telecom industry and the sharing of information when it becomes active worldwide. Ultimately, it would benefit customers.
Legal Factors Impacting Telecommunication Industry
Some of the main legal factors in the Telecommunication Industry PESTLE analysis are as follows;
Data Privacy Laws
The consumer market has become highly cautious about the internet, telecom, and online data privacy. For instance, Telecommunication Act of 1996 provides a comprehensive framework for telecom companies on how to operate their business in the USA. Telecom companies have to comply with the TIA Act 1979 in Australia and the Communication Act 2003 in the UK.
Environmental Factors Impacting Telecommunication Industry
Some of the main environmental factors in the Telecommunication Industry PESTLE analysis are as follows;
Low Carbon Footprint
People have become highly cautious about the activities and operations of companies and their impact on impact on the environment. Telecom companies should employ renewable sources of energy in order to decrease their carbon footprint on the environment. Their focus should be on the sustainable mode of running the business.
Conclusion: Telecommunication Industry PESTLE Analysis Example Company
After an in-depth study of the PESTLE analysis of Telecommunication Industry; we have realized that the Telecom Industry plays a key role for businesses. If you are learning about the business of the Telecommunication Industry, then you should keep in mind the abovementioned macro-environmental factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
