Globalization

Abstract

Although demand for telecoms services is widely dispersed, it is simultaneously quite highly concentrated because private households typically make little use of their telephones and primarily use them during off-peak hours when rates are low. Businesses, on the other hand, are the main users of long-distance and international services and use is largely confined to peak hours. Large multinational businesses accordingly possess considerable market power, and they are increasingly demanding high-quality, reliable services on a worldwide basis. This pressure has built up very rapidly given the ever-growing use of computers with their enormous capacity to download vast amounts of information along digital highways. For those involved, the idea of a one-stop-shop (that is, the ability to access the full range of telecoms services through a single group of operators) has immense attractions, and many of them have already taken steps to integrate their telecoms systems in house.