This is a sample dissertation chapter on 3G:
Every century has it own leading industry in the society to represent the success of human beings and the improvement of living standard. With the improvement of technology, it has placed as a significant aspect in the business development for many years. Recently, there is a emergent 3G spectrum for mobile phone industry rollout in the market which greatly draws the attention to the entrepreneurs. By investigating how 3G technology involved in societies and daily life, it is clear that future businesses would appear in a different picture. When the technology is widely established in the future, there will be new ways of business operation and new approach of defining business. “Mobile” phone would not only be a calling device using wirelessly, it is predictable that people will be entering into an era of truly “mobile” in all sort of products and services. It is the time for entrepreneurs to expand and shape what definition of business will be in the future.
The rise of the emergent entrepreneurial issues
Businesses do not exist in a vacuum; they survive due to the fact that they are on behalf of the important part in the society. Over the period from the past to modern societies, entrepreneurs are finding new ways of doing business in order to cope with the changing world. Thus, every century has its unique new industries in correspond to appear as a sign of that period. People have been living in a world of revelation for many decades, especially in the 21 century where they are becoming more educated and more powerful in inventing new technologies; unpredictable incidents happen everyday which affect people in the way of doing or implementing things. The influence of uncertainty has lead to a quicker response in adoption of new technologies, in other words, entrepreneurs are skillful enough to plan strategy by working with alternative future contexts. According to an interview by Hanley to Schwartz from AFR BOSS magazine, he points out that “we are living in a moment of big surprises” yet we pretend we live in a world of continuity; personally, politically, organizationally, we make plans for more of the same.” (2003) The macro issues of changing political environment, social cultural impact, new inventions, trade restrictions to the micro environment of the changing living pattern of people, living standard or the altering consumer behaviour; all of the above impact the approach of how future businesses will be and they are interrelated. There are new types of businesses initiated due to the changing of world living pattern. What industries areas are developing nowadays in coping with the forces and what impacts will they carry out which causing entrepreneurship to adopt new methods of working is the main focus to discuss and investigate, which are the emergent entrepreneurial issues.
Developments of mobile industries
The emergence of internet and the dotcom bust in the 19th and the 20th century that creates lots of business opportunities and brings out new form of businesses operation like online shops, banking and efficient data transfer. It seems that technology has reached to maturity which has already generated a series of impact and benefits towards human societies in the last twenty years, however, it has not finished yet. According to Hanley (2003), many technology companies felt that the technology boom would continue indefinitely and made forecasts accordingly. The development of technology is something that is hard to predict, it is difficult imagine how the society will look and who will become the entrepreneur in the technology industry. Take mobile phones as an example, 2G (the second generation), which is the spectrum most of the people are using nowadays, it supports voice service, SMS messages, WAP internet service and some of the handset in recent years has a little camera attached on it. The development of the 2G mobile has accomplished to a mature stage that besides the core service of making calls, companies needs to add value in the product by providing additional service such as lowering call rates, offering entertainment information SMS or supplying operator service for directory seeking in order to gain more market share. Yet, the development of mobile industry has not stopped. “You need to ask yourself what people will be doing with their mobiles, or what will be doing with these devices in three to five years’ time.” (Washington 2003) Mobile phones in definition, at first are used for communication wirelessly when people are travelling, today or in the near future, mobile phone would be converging with the internet to create a new era of mobile. It is an emergent technology of 3G (third generation), which has already started in May this year in Australia by Hutchison that identify as a big jump compare to nowadays 2G mobile service. Before analyzing the importance of 3G in the society and how entrepreneurs make use of the new business opportunities, it is important to have a brief outlook of what 3G is.
Original 2G network enable users to transfer voice or simple txt messages, though, the new 3G service enhance users to transfer large amount of information on a high speed which faster than the broadband nowadays. Today’s mobile networks were originally designed for voice traffic. In order to transfer large files quickly and cost efficiently, advanced interface network capabilities are needed. (3G newsroom 2003) The major difference between 2G and 3G is the speed, the new spectrum turn mobile service from voice oriented to data oriented like what people achieve through the internet on the computer. The speed of 3G acts as an emergent device with the combination of the mobile phone, internet, computer and TV in the speed of 144kb/sec to 2mb/sec when the network is fully developed. “3G services will add an invaluable mobile dimension to services that are already becoming an integral part of modern business life: Internet and Intranet access, video-conferencing, and interactive application sharing.” (3G newsroom, 2003) The evolving of 3G doesn’t means that there will be a faster mobile phone connection to the world wide web, rather, it is a whole new form of communication, new way of data transfer and access information which act as a transformation of the way to conduct business. The emergence of 3G climate is not just occurring in Australia, it is a global rollout and a huge investment by the entrepreneurs. Moreover, it draws the attention of all the mobile service company and the technology providers around the world in order to participate in this wireless battle. New forms of business or new approaches to defining their business would take place with the influence of the third generation mobile service. Critiques have also appeared in newspapers to investigate the how 3G would impact in business and the way of living. It is a revolution in the 21 century.
The wireless battle
According to the Sydney Morning Herald dated 29/3/2002, “less than 5% of Australian subscribers will be on 3G networks by 2005, but penetration will steadily increase to 75% by 2010, when 15 million mobile phone users are expected to be spending $19 billion a year.” Since 3G mobile is anticipated to be another controversial high stakes in the world, before observe the impact on 3G to future business, entrepreneurs of the mobile company has already started a battle in coping with this future trend. Hutchison Australia, a start-up phone company launched in 2000 from Hong Kong, has spent 2 billion to the end of 2002 in building the 3G network. It estimated that there will be another billion spending in Australia in this project. (Washington 2003) Apart from the huge investment in Australia, it has already begun a global invasion in many European countries and other parts of the world. Looking at the existing mobile phone service provider, Telstra, Vodafone, Optus; in contrast, contending with the global rollout of Hutchison, they aim at doing their best in extending the business life of 2G mobile. With the secure customer base for the three companies, they got the license of 3G service, but they prolong the project and waiting for the right time to enter when Hutchison is dry on their capital. Washington 2002, points out that other mobile services companies modify their business plan to keep customer by satisfying the incremental demand from the customer for additional services. In the other angle, Hutchison, who clearly have a different view, they don’t have customer base. They are coming out to sell the future in the market by attracting and getting customer, it has to be on the front foot in 3G and leverage it to the max. (Washington 2002) On the other hand, Telstra, Vodafone and Optus are maintaining customers as their prevailing approach in this competition by blurring the edge of stepping into 3G technology to keep their territories. While mobile phone entrepreneurs are attacking each other in using their talent strategies with capital weapons in order to set up and conquer the wireless empire, other entrepreneurs around the field are also monitoring business opportunities to step into the market. The 3G technology impact on a lot of areas in the society which leads to the new business type development and the new way of working in the near future. Below is the analysis of the sequence of effects in the persuasion under 3G technology in the society especially in business areas.
New forms of business and opportunities
Companies outside telecoms today will take advantage of 3G to develop innovative new services. Pictures only happened in the science fiction movies where people can see who they are talking to in the real time would happen in the future. Moreover, people can watch the news like they would on the television using the handy machine when waiting for a bus or sitting on the train. People can email your phone or you can get video messages. The emergent of 3G would allow services not possible before. From the position of the customer, these benefits are really sound in providing better services anytime in anywhere. In spite of the convenience that everyone could notice, as an entrepreneur, it is needed to think behind the episode to search for opportunities and think beyond to prepare for the future. “3G is not an event, where you just make an announcement and suddenly you have got it, it is a continuum.” (Trinca, 2003) When the 3G technology is developing, there will be more related business arise in order to be complemented with integration. Businesses are becoming more specialized than the influenced of internet in the future. Since 3G technology allows users to obtain or download trial movies, clips of the sporting events or other entertainment, it is predictable that there will be more information provider specialize in supplying news, sporting results or similar data through the spectrum. “Five years ago data services accounted for only 1% of carriers’ revenue, in 2002, it accounted for 7.5%” (Nicholas, 2003). In the upcoming years, corporate is expecting new revenues from data rather than just voice calls. Moreover, the rapid speed of 3G make a great distinction in the shopping culture compare to the existing internet. One of the problems of online shopping is the lack of real feeling of the product and actual contact or interaction with human beings.
Shopping through 3G mobile phone would definitely solve the problems. Imagine an immediate video conferencing with the planter standing in the tulip farm in Holland to introduce his new species and allow you to pick the flowers you like; which is hard to do on the internet and never fulfill unless you travel miles to the place. Hence, there will be more wireless store and entrepreneurs will be thinking of different ways to attract customer through the 3G innovation. Besides, Higgins from the Sydney Morning Herald also supports that most workplaces will eventually go wireless with 3G providing an outdoor link between portable computers and the office network (2002). This eventually conveys a new approach of doing business. There is lots of space in emerging 3G industries directly or indirectly, it require entrepreneurs watch closely to the market with creative ideas.
Impact on the existing businesses
According to the AFR, report from the Allen Consulting Group commissioned by the Australian Mobile Telecommunications Association which confirmed that just over 12 months ago, the number of mobile phones in Australia outstripped the number of fixed lines. (2003) Thinking back to 5-7 years ago when mobile phones were not popular like nowadays, holding a mobile phone seems to be a sign of status especially to modern business people in the busy society. Today, mobile phones would not be an add-on, it is becoming a fundamental aspect for people in everyday life. With the competition from different mobile phone service provider, usage charge for 3G would ultimately be decreased to a range at the widely accepted level.
Traditional fixed line services are predicted gradually be occupied by mobile service. Moreover, the impact on the internet forced businesses to present online in competing with each other. Nevertheless, there are still some companies choose to keep their operation method in avoiding to attend the cyberspace. Due to the fact that the implementing of 3G spectrum will be far more acknowledged than the internet, it will construct more innovative method of doing businesses. Physical companies would no longer be able to afford not to exist on the net since more and more businesses would be opened in the marketspace. Optimistic scenario has even made by Wallace 2003 from the AFR BOSS that it would be possible for mobile internet overtaking the traditional internet. Banking services or other financial services will be engage in a new approach of business. There will be a great saving in transactional cost and operating cost with less or even no physical store required since face to face discussion could be done via video talk.
Besides examining the technology aspects which affect future method to obtain money, it is also significant to inspect on the consequence of the future labour force. Given that there will be a growing need for mobile users to interact with machines, and for machines to interact with other machines, “reporting faults, ordering new stock, or relaying location details whenever required. (3 Hutchison Australia, 2003) It may impose to a crisis that the future need of human labour force will eventually decrease due to the diminishing require on human power. On the other hand, labour force may obviously be separated into two areas, most of the people will be either working on the technology related field or the logistic related industries. The evolution of 3G extends the importance of logistics industries, which is a new term appeared in recent years. Logistic management will be more important than nowadays to the entrepreneurs since advanced logistic flow from the starting point to the end user is the main competitive edge of the company. In addition, starting from the invention of the internet, people entered into the information age. With the help of 3G industries, the information or the knowledge era will push to another peak of maturity stage. Intellectual capital, the term that lots of entrepreneurs are learning and concern about in the information age, would be represented in a large part of the company’s assets during the development of the 3G industries. The most powerful entrepreneur in the future will not be the one that holds substantial money capital, it will be the one with most intellectual capital in their company. Though intellectual capital and logistics industries are areas that future businesses should pay attention to, which are another story to talk about, thus, it would not be investigate as the major issues in this paper. The idea needed to be stated is that besides mobile phone service provider, logistic delivery and intellectual capital are two other emergent areas with massive potential that entrepreneurs should concern about.
With the global rollout of 3G mobile, it is anticipated to be another trend in communication and transmitting information. The forces do not happened in mobile industries alone, however, there will be sequence of change following with the new business in other type of industries. In dealing with the emergent technology in the market, entrepreneurs need to be more creative in capturing business opportunities and more aggressive in competing with others. In order to be a successful entrepreneur, faster outlook in preparing to obtain a place in the market is crucial, moreover, how to cope with the changing business pattern and how to face the impact lead onto is the challenge for entrepreneurs in the 21 century.
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