Essay on Competition in the Telecommunication Sector

Published: 2021/11/08
Number of words: 1146

Fair competition in telecommunication sector is good since it enables different companies to provide more efficient telecommunication services to their prospective customers. Any business that faces fair and ethical competition has high chances of improving and providing more efficient services and goods to its clients, unlike companies that do not face any competition (Rodríguez et al., 2021). Telecommunication is an important sector that provides efficient communication in different companies and organizations. Nowadays, the telecommunication sector compresses several companies which provide possible communication internationally; however, the industry faces stiff competition from other upcoming technologies. The idea of communication was first introduced around the 19th century by European countries to connect different countries (Chesula & Kiriinya 2018). Firstly, the knowledge of telecommunication used cables to transmit information/ data from one end to another. However, due to ethical and fair competition from different companies, there was an improvement telecommunication sector, thus increasing the efficiency and accuracy of communications from one end to another. Basically, from the research, fair competition in the telecommunication sector has improved its efficiency and accuracy, especially in today’s era compared to previous times.

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Naturally, fair competition in the telecommunication sector has provided better services, especially to the clients and customers’ attendances ( Faccio & Zingales 2017). Additionally, fair competition in the industry affects the final product towards the clients. It involves the general performance of the entire sector, thus improving the last services to the prospective customers. For instances, the evaluation of the telecommunications sector depends on the type of competition in the market. For example, when telecommunication began around the 18th century, there was inferior technology in the market, limiting further inventions and technologies. According to the research, when there is ethical and fair competition in the market, there is an improvement in terms of services and products provided by different companies. When there is more than one company in the market providing telecommunication services, there is a high possibility of prospective customers enjoying the best benefits. According to my perspectives, fair competition in telecommunication will limit the chances of monopolistic since several companies provide the same services(Chesula & Kiriinya 2018). Monopolistic is when a certain provides, and services are provided by a specific person or company such that it does not face any competition from any other companies. In this situation, the company may not offer good services to its prospective customers since it does not challenge any other company. Therefore, according to my perspectives, fair competition is relatively good in the telecommunication sector since it prevents such scenarios. To justify this, several scholars argue that fair competition creates an enabling market whereby customers are well catered to.

According to the current research, the communication sector has been facing fair competition, especially in developing countries. I was basing the many scholars’ arguments; it’s a good and reasonable idea for the telecommunication sector to meet ethical and fair competition since it improves the needs and satisfaction of its prospective customers. Fair competition ins this sector has promoted the existence of the Internet of Things (IT). Basically, according to my perspectives, ethical and fair competition in the telecommunication sector is a good idea since it has improved communication between the people internationally. Additionally, fair competition in any business sector acts as motivation since business and companies can negotiate and consult with each other. The aspects of consultation and negation will open up different telecommunication sectors to develop a new idea or improve existing knowledge to more developed ones. In other words, the improvement of technology mostly depends on the type and level of competition existing in the market. As the expansion of the telecommunication sector continues, there have been many companies and organizations that pose fair competition, especially in the provision of services. According to technology statistics, telecommunication services have rapidly expanded due to instantaneous demand among customers and businesses. In this case, there is a need to understand that all businesses and companies need telecommunication services to interact with their customers and other companies ( Faccio & Zingales 2017). Depending on the new technology, fair competition has improved the telecommunication sector. Even though the telecommunication sector has tried its best to avoid competition, the nature of the market has increased pressure between various companies. According to the research conducted by Transparency Market, the international telecommunication sectors face fair competition, which in turn aims in improving the technology of this communication. In this argumentative analysis, fair competition in the telecom sector is not a big issue since it mainly acts as catalysts that speed up telecommunication services. The telecommunication sector is projected to grow by 37%, facilitated by fair competition among the growing companies.

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Fair competition splits the telecommunication sector into several segments, such as residential and commercial segments. According to Hashim et al.;2009 the residential faces the highest competition, thus improving the telecommunication aspects of the customers. Despite the fair competition, commercial telecommunication projects the highest percentage of growth compared to residential. Currently, the development and expansion of new telecommunication services bases population and the chances of internet penetration and the adoption of mobiles and laptops services. Several telecommunication firms are investing in fast-growing markets by integrating trending communication services such as artificial intelligence and the Internet of Things (IT). Under normal circumstances, telecoms firms’ evolution would not have progressed if there were no fair competition between the existing companies and firms.

To sum up, fair competition in telecommunication is the aspects endorsing ethical competition between the different producers. Basing this discussion, I strongly support fair competition in the telecommunication sector since it has generally improved communication services. From a perspective point of view, the telecommunication sector is expected to improve significantly since more companies are ambitious in communication. As pointed earlier, ethical and fair competition motivates many producers to give the customers the best output. Therefore, in this scenario, the companies are expected to discover more technologies and communication services to solve a particular issue. Regarding this, fair competition has improved telecommunication services in both local and international.


Chesula, O. W., & Kiriinya, S. N. (2018). Competitiveness In The Telecommunication Sector In Kenya Using Porters Five Forces Model. International Journal of Research in Finance and Marketing (IJRFM)8(7), 1-10.

Faccio, M., & Zingales, L. (2017). Political determinants of competition in the mobile telecommunication industry (No. w23041). National Bureau of Economic Research.

Hashim, S., Munir, A., & Khan, A. (2009). Foreign Direct Investment in Telecommunication Sector of Pakistan: An Empirical Analysis. Journal of Managerial Sciences3(1), 111-123.

Rodríguez-Castelán, C., Araar, A., Malásquez, E., & Ochoa, R. (2021). Competition Reform and Household Welfare: A Microsimulation Analysis of the Telecommunication Sector in U.S.A

Tangkitvanich, S., & Ratananarumitsorn, T. (2002). Competition and regulatory reform in the Thai telecommunication markets. TDRI Quarterly Review17(4), 112-118.

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