Introduction:
The Article “Mobile Telecoms in Pakistan At Last 3G” dated April 26th 2014 from The Economist. Mobile Telecoms are vital to the Country’s Development. Waiting of so many years and years, AT LAST the 3G and 4G has been launched in Pakistan. Pakistan was the only major country in south Asia which was deprived of the post modern 3G and 4G high speed Mobile Internet. Pakistan’s neighbour India started its 3G Service in 2010 and Afghanistan which is a war damaged country switched to 3G in 2012. There are almost 132 million peoples who used mobile phones in Pakistan, which is almost 73% of the total population according to the Pakistan Telecommunication Authority.
There are Five Mobile Companies Operating in Pakistan, which are Mobilink, Ufone, Warid Telecom and two foreign ones, China Mobiles (Zong) and Telenor of Norway. All took part in bidding except Warid Telecom Pakistan.
Microeconomics:
Is the study that how individual and firms make decisions and how they interact in markets.
Demand and Supply, Price Elasticity and Price Equilibrium:
The law of demand and supply is one of the basic principles of economics. The quantity demanded of a goods or services is the amount that consumers plan to buy during a particular period of time and at a particular price. Where other things remain constant, an increase in the price of good, increases the quantity supplied or vice versa. The quantity supplied of a goods or services is the amount that producers plan to sell during a given period of time, increases in the price will tend to decrease the quantity demanded or vice versa.
Analysis
The 3G/ 4G service will provide a Market full of uncertainty, the Shopkeeper think th...
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...niversal incentive can be drawn by increasing the taxes i.e. they derive from taxes paid by all sectors of the economy.
Conclusion
To conclude, this can be said that, Cellular markets are full of uncertainty, demand and supply has always been opposite to each other in any case or product which automatically adjusted itself to reach equilibrium level, increase in demand will cause rise in prices which in results will go in the favour of suppliers. From consumers point of view , they think through 3G/4G technology they can have quick speed and high video quality. This will also develop a good communication services like Wide area wireless voice telephone, mobile Internet access, video calls, television and broadband wireless data. Everyone wants to buy 3G and 4G technology powered devices and tools. It has enhanced the way of life of all mobile users in Pakistan.
Let’s begin with the theory of Scarcity. The concept of demand is directly relatable to the scarcity of an item. Let’s look at Jackson Pollock’s work for example. If only 20 paintings were available created by Jackson Pollock, there would be a much greater demand than if you could purchase them easily at your local art gallery.
We the consumer would rather pay less for any product that is needed or want. Ultimately we are the reason for high prices as well as low prices. Prices of products do not always stay the same and more popular products have higher prices than less popular products. These fluctuations, high prices and low prices are from the idea of supply and demand. Supply and demand defines the effect that the availability of a particular product and the desire or demand for that product has on price. Generally, if there is a low supply and a high demand, the price will be high (Investopedia). To understand the idea of supply and demand, the understanding of supply and the understanding of demand must be defined. The Law of Supply states that at higher prices, producers are willing to offer more products for sale than at lower prices, also that the supply increases as prices increase and decreases as prices decrease (Curriculum Link). The Law of Demand states people will buy more of a product at a lower price than at a higher price, if nothing changes, at a lower price, more people can afford to buy more goods and more of an item more frequently, than they can at a higher price and that at lower prices, people tend to buy some goods as a substitute for others more expensive (Curriculum Link). In todays economics these ideas are seen frequently in everyday life. The laws of supply and demand are seen in many ways in the company Apple Inc. Each year Apple Inc unveils a long awaited mobile operating system and IPhone. We can also see many aspects of the law of supply and demand in Nike Inc’s Jordan Brand. Jordan Brand has released a number of...
In Book V of his Principles Alfred Marshall describes what he denominated “the state of arts” of the supply and demand theory, going back to Adam Smith. The assumptions then applied to the matter was that 1) demand comes first, 2) it is up to sellers to adjust supply to demand through production and marketing, a mix where the price is the most important variable, and 3) production takes time. Marshall summarized statement 2 later on into a single phrase: “Production and marketing are parts of the single process of adjustment of supply to demand” (MARSHALL, 1919, p. 181). This set of three assumptions suggests that the basic principles of the supply and demand theory collected by Marshall from the work by some scientists were then laid, requiring therefore only the right mathematical treatment.
In today’s society, smartphones have inevitably taken cellular phone sales by storm. Flip phones and home phones, with the classic 9 number keyboards, are being replaced with touch screens that allow for more interactive and advanced phones. The Apple iPhone and the Google Android are two examples of how technology is advancing the way we communicate. These smartphones, backed by each company’s unique business models, have changed the way cellular devices are used and sold.
In economics, particularly microeconomics, demand and supply are defined as, “an economic model of price determination in a market” (Ronald 2010). The price of petrol in Australia is rising, but the demand remains the same, due to the fact that fuel is a necessity. As price rises to higher levels, demand would continue to increase, even if the supply may fall. Singapore is identified as a primary supplier ...
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
Mobile is the first order priority device for access because people are connecting with others, finding entertainment, and doing business—all with smart phones. The prices of mobile phones are never over $1,000 in today’s world. They are affordable and accessible. As the result of the changes the worldwide and national business environment has undergone, people own 1-2 cell phones on average. However, the mobile markets in US seems to have been saturated.
There is a slowdown in sales of mobile handsets, in some markets like the UK, as the mature part of the product lifecycle is reached. Customers are exposed to a barrage of different images and messages by mobile phone companies, as the competition gets tougher. Vodafone appeals to new customers and aims to keep its existing ones by emphasising the uniqueness of the brand.
Today, Nokia is the world leader in mobile communications. The company generates sales of more than $27 billion in a total of 130 countries and employs more than 60,000 people. Its simple mission: to "connect people."
Under the circumstance that the mobile phone industry entered the 3rd generation, Nokia faced competition from both macro level and industry level. For the macro level, the government encouraged competition among the operators and handset manufacturers by giving digital licenses to new entrants. As a result, the mobile phones became more sophisticated, for example, the cameras and the games in the mobile phone. For the industry level, which can be analyzed by the Porter’s Five Forces, (lecture )Nokia was facing threat of new entrants, competitive rivalry and the bargaining power of buyers is increasing as well. As the government encourage completion between the handset manufacturers, there are several new entrants from different countries enter this industry, such as Apple from USA, Samsung from Korea. These new entrants compete with Nokia in both smartphone segment and basic phone segment. Some of them even constructed “ecosystems”, which they could integrate the services and applications quickly, in order to produce the phone in just two days. For the bargaining power of buyers’ aspect, they do not need to rely on the only operating system Symbian. They can choose Windows mobile launched by Microsoft, Android launched by Google and Ios launched by Apple, in addition, basically all of them are better than Symbian (Amiya, 2010). The buyers could choose any
In conclusion, generally speaking the Law of Supply states that when the selling price of an item rises there are more people willing to produce the item. Since a higher price means more profit for the producer and as the price rises more people will be willing to produce the item when they see that there is more money to be earned. Meanwhile the Law of Demand states that when the price of an item goes down, the demand for it will go up. When the price drops people who could not afford the item can now buy it, and people who are not willing to buy it before will now buy it at the lower price as well. Also, if the price of an item drops enough people will buy more of the product and even find alternative uses for the product.
That is, it is sensitive to price change, and also to the quantity demanded. This means that if many people are consuming a good, the demand is greater than if less people are consuming the good. To further clarify, take the example of attending college. In an environment where most of an individual's peers are going to attend college, the individual will see college as the right thing to do, and also attend college to be like his peers. However, in an environment where most of an individual's peers are not going to attend college, the individual will have a decreased demand for college, and is unlikely to attend.
G in 1G, 2G, 3G and 4G stands for the “Generation” of the mobile network. Today, mobile operators have started offering 4G services a higher number before the ‘G’ means more power to send out and receive more information and therefore the ability to achieve a higher efficiency through the wireless network. During the time of 1G, radio signals were transmitted in ‘Analogue’ form. 2G networks on the other hand, were based on narrow band digital networks. The 3rd generation of mobile networks has become popular and users access the Internet over devices like mobiles and tablets. This means a 3G network actually allows for more data transmission and therefore the network enables voice and video calling, file transmission, internet surfing, online TV, view high definition videos, play games and much more. 4th Generation mobile networks are believed to provide many value added features.
The growth of services sector in our economy is a step forward in the development of Indian economy. In day to day life of an individual the use of mobile phones acts as necessity in getting connected with people for one or the other purpose. India has a largest variety of smartphones available for the users. Because of the fast technologies in smartphones & in market, the networks and services providers of telecom must be updated so as to meet the requirements of people. Indian telecommunication industry is considered to be one of the fastest growing telecom industries in the world. The mounting up of the subscribers reaches to an approximate 800 billion plus users in telecom sector. The industry is growing at as pace in such a way that it will reach a level beyond the telecom markets of USA &
What does supply and demand mean? Demand indicates the quantity of a product or service that is aspired by