Along with the swift currents of globalization, which involves an exchange of information demanded faster and faster across regions and countries, making the role of telecommunications is very important. Telecommunications as a vehicle for exchange of information will increasingly pay attention to aspects of service quality. Besides developments in the field of the current world of information so quickly, in terms of content and technology used to convey information.
Telecommunications technology is the fastest growing technology, along with the development of electronics and computer industries. Telecommunications technology trend is increasingly toward wireless technology (without cable). There are some indications that can be viewed on the process of development of wireless technology. Indications are: the shift to digital technology, the greater the capacity, the more simple devices, expanding coverage, better security and privacy, personality and the addition of other facilities. The direction of development of wireless technology, all headed into Mobile Telecommunications System technology. The technology can be approached from cordless technology, cellular (mobile) and satellite. The evolution of telecommunications technology currently has a tendency to switch via the radio, optical or satellite.
Mobile telecommunications is experiencing rapid technological diffusion due to limitations of conventional telecommunication technologies that require a long time to network development as well as waiting time for customers to obtain the connection. The relationship between competition and diffusion in the economic literature is often stated in the diffusion of technological innovation in general, more and more number of firms will be more rapid diffusion of innovation. Unlike in most conventional telecommunications industry still follows a natural monopoly market structure, mobile telecommunications since the switch from analog to digital monopoly market structure untenable. Innovations in technology have increased efficiency in the use of radio waves and eventually spektum bigger market size both for customers and operators. Furthermore it can be said that the growing market potential will encourage more operators into the industry. There are two reasons that often dikemukan to explain this:
• The development of technology will push many companies into the market.
• Competition in the market will increase with the speed of technology diffusion
This cellular telecommunications.
Digital technology has opened up opportunities to improve the overall system capacity due to more efficient use of spectrum. This will allow more than one operator to exploit economies of scale. In general the structure of the cellular telecommunications market becomes a duopoly or oligopoly. Because the more rapid development of five technology and capacity constraints have petered out, the more companies can enter the market and will increase the degree of competition.
To determine the existing trend of telecommunication industry, we must know beforehand the structure of industrial environment. Industrial environment is the extent of the external environment company which produces components which normally have the implication of a relatively more specific and direct influence on company operations. The development of an industry can not be separated from the principals of competition therein. Industrial structure has a strong influence in determining the rules of the game.