Rise in the US Telecom Industry During the Economic Crisis of 2005

The economy has never been stable throughout the world. It has either been inflating or deflating. The former has a higher ratio of occurrence than the latter.

This economic instability has developed a huge margin of difference among social classes. The higher-class benefits and the lower suffers.

The US economy has a history of two major crises;The Great Depression and The Great Recession. Besides these noticeable incidents, the US economy has always been on the seesaw.

Apart from the economic fluctuations, the US Telecom industry has had exponential growth since 1998. The advances involved in the progression of communication devices and its network are commendable.

The change in the telecom industry compared to this day and a decade back prevails the services and products viable to customers.

There has been a significant revenue generation in US Telecom Market around $1,707.96 Billion in 2021. These are forecasted to reach $2,467.01 Billion by 2028.

The growth rate of 5.4% CAGR from 2021 to 2028. This represents the strength of the telecom market and its demand in the market.

During the economic depression, the steep slope in the financial graph of the telecom industry wasn’t affected by even 1%. This identifies the need and future of the telecom market. The saturation brought by the abundance of companies in this industry is insignificant.

Because this business operates by the sole rule of better services at affordable prices. The dictation involved in the solitude of companies integrated into this field has set such standards that are hard to integrate.    

Since 2000, the US was facing employment issues until 2005 which led to the increase in the unemployment ratio, and the year prior to the start of the Great Recession means in 2006, the US housing market acquired hype causing great losses in the mortgages to financial sectors.

The lower interest rates over time and payments due by the customers accumulated to globally depressed interests. Financial strength is developed when there is a continuous flow of transactions into your treasury which lacked here.  

These incidents led to the Great Recession from 2007 to 2009. Whilst these years, the US fell into the depths of debts and treasure deficits at the international level resulting in the global financial panic.

The root cause of the Great Depression was widespread misinformation and for the Great Recession was the seized inflow of money. Both incidents taught the US to uphold their flow of information and create certain ease in the return policies so they are able to comprehend their payments.

The stagnant events of transactions during the crisis led the US economy to the bottom line in 2009. The recovery in the following years was slow due to some unprecedented losses in the federal reserve.     

During the last quarter of 2005, the employment ratio had flattened instigating the dread for bread and roof among its citizens but in that similar year, the US Telecom industry had gained an opportunity for growth and expansion.

Around 15 wireless telecom companies in the US were launched that year. This substantial number of startups in the same year in the telecom business adhere to a noteworthy incline even in times of crisis.

These companies were not just a startup but they grew to be a tremendous success. Among these companies, Mobilelink USA is a great example. The company launched in times of crisis today generates around $116M per year.

It is a retail telecom outlet company catering its services to Cricket Wireless. It has around 600 stores across the US employing over 5000 people. It has built a huge customer base in the last two decades.

Its owner Furqan Ken Khan ever since Mobilelink’s launch has been able to integrate twenty-eight other industries and progress radically. His growth in the telecom industry is applaudable but his work in other fields of the industry is also admirable.

The US telecom industry’s future evolution depends on the following factors; the potential for more competitive broadband markets, a shift to more decentralized government broadband infrastructure funding, rising interest in multi-access edge computing and private cellular networks, the need to reassess cybersecurity and risk management in the 5G era.

When we address the telecom industry it must be kept in mind that the telecom business has two major categories Wireless and Wired Telecommunications. Wireless is the one opting to the modern epoch and Wired represents the initiation of the Telecommunication era and has changed its status from being an informal and formal mode of communication to a formal thoroughly. It is thought to be suspended in the next 30 years or so.

The US telecom market is hard to penetrate and build your business from the scratch at this time for two main reasons; first, US wireless telecom industry has become so saturated it has almost zero to no room for new establishments.

Wired telecom is the line of business nobody wants to invest in anymore and why’d they waste time in building something that has no future.

Secondly, US laws and policy against this industry has made this field so conservative and resilient to new investors. The market shares are distributed so vaguely among shareholders that the statement ends up being in deficit.

The taxation and privacy policies have created so many complications for the providers. Terms and conditions have become subjectable to court legally as any witness or testimony.

US Telecom Industry is destined to grow with profitability in the near future. The influence of the economic crisis on the customer base of telecommunication companies is inverse.

These companies tend to earn no matter the national or international crisis. The network providers have become the medium of connection around the world.

No nation is far but a few clicks away from facetime. This industry has become the glue that keeps all the pieces of the world connected doesn’t matter if they are in the wrong order or don’t want to be in touch. They are always closer than you think.