PESTLE Analysis: Telecom Industry UK

Political Factors: Impacting Telecom Industry UK

Internet Users all over UK are enjoying substantial internet freedom yet there are some restrictions on internet access or available content. England’s government is concerned about the information provided to the people through telecom industry so it keeps an eye on online platforms and content hosts to curb harmful material. Policy makers stand together to protect people and have devised a care approach by  issuing Online Harms White Paper.

England has several domestic legislations which govern regulations in telecom market of England. They ensure provision of basic user rights. It sets powers for Ofcom as a national regulator which manages radio spectrum in UK. The European Union regulatory framework has been reviewed and it adopted a new directive in 2018 which was European Electronic Communications Code which EU countries applied by Dec 2020. But now UK has left EU and it is complying with secondary legislations under withdrawal act 2018 to implement corrections.

Government has now implanted EECC but there are no significant impacts on telecom business and protection for consumers in these services. Government dictates performance of mobile companies as it provides licenses to manufacture or market smart phones for which companies have to pay huge sums. This is quite discouraging for new-comers who want to join Telecommunication industry.

Government filters the provided content through internet by seeking help through ISP via different networks. Though the current political environment in England is supportive for telecommunication industry but it’s exit from EU might impact performance of mobile phone companies as they will be extremely prohibited from exporting products to all European consumers.

Economic Factors: Impacting Telecom Industry UK

UK is enjoying a stable economy which its self is an opportunity for telecommunication industry. Internet, smartphones, computer, television, and cable manufacturers are able to make differences in country’s economy because they attract customers from all over the world. Investors are attracted by the the profitability they can generate by recruiting sums in England’s telecom industry. Network providers present new options to access internet which is complementary to the success of this industry. Citizens of England have a high purchasing power because England’s economy lies in four topmost positions among countries in UK.

Telecommunication Industry of UK keeps 68.9 million people connected who are located in different regions throughout England which helps it generate big revenues. England’s Tech sector is expanding 2.6 times faster than rest of the UK which augments growth. Businesses are expanding and so is the use of Internet, mobile phones, and other electronic devices used for the purpose. Jobs opportunities shall emerge but England is yet providing lower costs for the services.

Telecommunication industry needs to double its infrastructure costs because of the 5G broadband development it has come up with. Costs are rising and revenue growth isn’t at the same pace which is challenging. England is now facing headline rate of inflation – 5.1%. It seems highest in the decade which will make manufacturing and services more expensive for telecommunication industry. Locals of England have to pay fee for license to install telecom equipment and service providers have to pay an administrative charge which means the sector is expensive.

Social Factors: Impacting Telecom Industry UK

21.3% of England’s population lives in rural areas which means the horizontal growth for telecommunication sector in England isn’t restricted. There are less areas of difficulty for telecom sector in England because most of the people can afford mobiles, internet devices, packages, and television. Individuals in UK maintain a work-life balance and prefer doing jobs which means Telecom sector in England can have hardworking individuals.

These people work for few hours and get good wages, more benefits, and paid holidays which build their morale and positively impacts Telecom industry. 65 million people in UK are mobile users and active at internet, this number will increase in future which is an opportunity for Telecom sector. A study claims that each individual checks his phone at least once in 12 minutes during the hours one is awake. 71% people never turn off their phone and 78% claimed they can’t imagine living without it.

Voice calling and web browsing is important for them but now mobile phone usage has expanded over online shopping and medical help which furthers Telecom sector. 96.6% of households in England are expected to have internet access with 53 million active social media users. Each of them spends 110 minutes per day on social media which shows their attitude to remain in touch with friends and family. The social activeness of people in England furthers the opportunities in Telecom sector because of thoughts they share online and become a source of adding value.

Technological Factors: Impacting Telecom Industry UK

Telecom sector has immensely advanced in requirements because people want voicemail, caller ID, messaging, data service, and other features in their mobile phones which demand Telecom sector to innovate and remain up-to date with big investments. Company needs to add value which means it faces a-lot of competition in market due to technology. Consumers in England come up with modified demands so Telecom sector has to work harder to deliver accordingly.

Technology has restructured telecom sector of London and remained efficient throughout Covid era. Now this sector is focused on building a resilient future by deploying operation changes and system thinking. This advancement will pave way for success and profitability of Telecom sector. However, 5G expansion demands industry to incorporate changes constantly to gear up the speed and enhance experience which demand more investments.

England’s Telecom Industry is now focused on edge computing which will speed up data transfer reducing latency. This will benefit the business in terms of profit and benefit users in terms of improved network security and local encryption in reduced costs. Technology has been so much improved that telecom sector is equipped with security and resilience assessment for deliberate and non-deliberate threats. Providers with the use of technology assure safety and privacy for customers. Telecom sector identifies the key relevant emerging trends within the industry and external factors which might impact the progress of industry. This is how this sector has strengthened to serve inhabitants of England.

Legal Factors: Impacting Telecom Industry UK

European Union is now focused on regulations and demand providers to take appropriate measures to better understand vulnerabilities that may exist in the system. Radio Equipment Regulation 2017 regulates the provision of telecom equipment in industry but UK Telecommunication and Security Bill will make amendments in it prohibiting the use of goods, services, or facilities by telecommunication companies supplied by specifically designated vendors.

This will exclude high-risk vendors from supply chain providing strength and stability to Telecommunication industry. Computers, mobile, laptops, and other electronic devices are principal exports of England and make a positive contribution not only to business but also country’s economy. However, for International trade importers and exporters need to follow trade regulations for electromagnetic compatibility, licensing, and electrical safety.

This strengthen the roots of Telecom sector in England making it durable. However, individuals involved in supporting these activities find it hard to comply with these regulations and fulfil criterion. For export providers need to classify their products to make them analysable with respect to regulations. Trade is easy among European Union countries because of lesser restrictions and charges. It is necessary for Telecom sector to design products that comply with Low Voltade Directive (LVD).

Also, the electronic devices should not interfere with radio frequencies and for this they have to comply with Electromagnetic Compatibility Directive For Electronic Devices On European Website. The imported or exported material must have a CE mark affixed to the product or packaging. It is necessary for Telecom Industry operating within the country to comply with regulations, align frequency of waves, and label products properly to protect themselves from penalties.

Environmental Factors: Impacting Telecom Industry UK

UK now experiences a disruptive change in it’s climate with winters being more wetter and summers being hotter. More rain will bring in more flooding. Water droplets will absorb signals resulting in lower coverage. Humid environment will also affect the strength of wireless signals and negatively impact connection speed.

This means Telecom sector has to work harder to walk through these circumstances and satisfy their customers. In the era of evolving modern technology of 5G, Open RAN, Edge Computing, and IoT, users are benefitted but employees working in the industry might find their job endangered.

This is because they are frequent with previously used technology and have to adapt according to modern implementations to stand steadily at their workplace. These are the people who have worked on previous versions and changing environment is jeopardising their jobs. This is good for the users but at the same time expensive because new services will have a revised payment.

Technology is advancing and Telecom sector is adapting accordingly but the situation doesn’t ensure the success of evolution. It doesn’t foresee which products will stay and which shall vanish. The loss and the profit both are initially unpredictable because of unknown circumstances. Telecom sector will further have to maintain required bandwidth, service with quality, expandability, easy usage, and updated services which will impact the sector unpredictably.