Essays on The UK Telecomm Industry - TalkTalk Business, British Telecomm Case Study

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The paper "The UK Telecomm Industry - TalkTalk Business, British Telecomm " is a perfect example of a business case study.   The company under analysis is the British Telecomm (BT) group and the TalkTalk Business (hereinafter Talk Talk). Both companies operate in the same industry: the fixed-line telecommunications industry and the two of the top four players in the telecoms industry in the UK. Primarily both the companies provide internet, mobile, and TV services in the UK and Ireland (BT group). BT is said to be the largest player in the broadband and TV industry with a 16% share controlled by TalkTalk (TTB annual report).

The telecoms industry is regulated by Ofcom which provides the rates charges and the regulations of access to infrastructure. In the European region, the UK Telecomm industry is considered to be the largest in the region. The report will, therefore, put the industry into perspective, its characteristics. Further, the report will also include a comparison of the two companies based on their strategic policies, their challenges and achievements in the last financial year and preceding periods. A recommendation for the challenges will be provided UK Telecomm Industry The UK telecoms industry has experienced rapid growth in the previous decades.

In the 1980s, only BT was the services provider but ever since the telecoms monopoly was privatized in 1984, service providers have come up. This affected a regulator the office Telecommunications (Oftel), later changed to Office Communications (Ofcom). The industry growth is now with many players that have fostered the growth. Among the top four players in the industry, based on market share include BT, Virgin, Sky, and TalkTalk. The UK communications industry is characterized by the serves: TV, radio, internet, fixed and mobile telephony and post (Ofcom communications market report 2016 pg.

7) The telecoms sector is currently being driven by the increasing need for faster broadband and efficiency in internet services. This is evident in the introduction and consequently the increase in the subscription of subscribers in the 4G network. Ofcom reports (2016) that in the last year, broadband connections increased by 28.7% with an average monthly use of 82GB. The telecoms services reported the highest revenue in the same year.

Generally, the market is driven by faster broadband connectivity and efficient technology that is smartphones. On average, the level of texting and calling has significantly reduced and more people are either communication using instant messaging or social networking sites (Ofcom Communications Report 2016). The development in the sector since the invention of the first telephone is what accounts for the attractiveness of the market. The UK has increased its 4G subscription to nearly the same coverage as the 2G and 3G had. Moreover, the superfast broadband availability had 83% availability in 2015.

The world business and the consumers are becoming connected, the uptake of smartphones and smart devices is also increasing, standing at 71% in 2016(Ofcom Communications Report 2016). To tap into this potential is the development of the 5G network, still in its infant stages, ( Smith 2016) that Ofcom concurs will be able to meet the high demand for high speed but may require higher frequencies band ( Ofcom media 2015). Competitive Advantage The competitive advantage of a company can generally be described to be those actions that a company undertakes in order to outperform other players in the same game.

More often these actions are captured by the strategic management and the strategic policies that are undertaken by the company (Wang 2014). There are nonexistent theories that have been used to explain the phenomena of competitive advantage: market-based theory and the resource-based theory of management. The market-based theory of strategy allows the company to formulate its str5ateguc policies according to the market trends. This is based on the argument that performance is determined by the market requirements (Wang 2014).

The theory, therefore, implies that the competitive advantage of a company is obtained by that company that can provide what the market needs and how it needs it.

References

BT strategic Report 2015 BT annual report 2015 pp 19-92 b

Hern A October 2016 TalkTalk hit with record 400k fine over cyber-attack [online] available from: https://www.theguardian.com/business/2016/oct/05/talktalk-hit-with-record-400k-fine-over-cyber-attack accessed 5/1/2017

Ofcom Reports 2016 the Market in Context [online] available from: https://www.ofcom.org.uk/research-and-data/cmr/cmr16/the-communications-market-report-uk accessed 5/1/2017

Ofcom Communications Market Report August 2016

Ofcom Media release 2015 [online] available from: https://www.ofcom.org.uk/about-ofcom/latest/media/media-release/2015/6ghz accessed 5/1/2017

Press Association November 2016 Data on over 130, 00 three mobile customers compromised in breach [online] available from: https://www.theguardian.com/business/2016/nov/18/three-mobile-customer-data-breach-phone-upgrade accessed 5/1/2017

Smith M December 2016 The arrival of 5G, cognitive radio and the future of connectivity [online] available from: https://www.theguardian.com/media-network/2016/dec/08/5g-cognitive-radio-future-connectivity-business accessed 5/1/2017

Sweney M November 2016 BT under increasing pressure from Ofcom to split from Openreach {online] available from: https://www.theguardian.com/business/2016/nov/29/bt-oenreach-competition-ofcom-european-commission accessed 5/1/2017

Sky News August 2016 [online] available from: news.sky.com/story/bts-rivals-unite-over-inexcusable-openreach-10518998 accessed 5/1/2017

TalkTalk Group Annual Report 2016 TalkTalk Telecomm Group Plc

Wang H L 2014 Theories of Competitive advantage Research Online University of Wollongong

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