Creative Writing

A Feasibility Study of a Telecom provider

Description
A short feasibility study about telecommunication industry as another communication service provider for the people of Saudi Arabia. Some figures are fictional and intended only to emphasize the main point, however, the style and format maybe helpful for those who are encountering some problem on how to write a feasibility study. Some texts are directly borrowed from unknown authors and unpublished manuscripts that is why citation and referencing was unintentionally. The author wishes to acknowledge the ideas of uncited authors that were not properly credited.
Published
of 9
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Transcript
  GLOBAL TELECOM, INC.A Feasibility Study for the third Telecommunication provider in the Kingdom ofSaudi ArabiaSubmitted byDr. Gene BenterPhD – Business ManagementExcutive SummaryTelecommunication is an important part of many modern societies. In 2006, thetelecommunication industry is estimated to have $1.2 trillion revenues or justfewer than 3% of the gross world product. Good telecommunication infrastructure iswidely acknowledged as important for economic success in the modern world on boththe micro and the macro economic scale.On the microeconomic scale, most companies have used their telecommunication tohelp build global empires, this is self evident in the business of online retailerlike the Amazon.com but even the conventional retailer Wal-Mart has benefited frompossessing superior telecommunication infrastructure compared to its competitors.In modern Western society, homeowners often used their telephones to organize manyhome services ranging from pizza deliveries to electrician. Even relatively poorcountries have been noted to use telecommunication to their advantage. InBangladesh’s Narshingdi district, isolated villagers use cell phones to speakdirectly to wholesalers and arrange a better price for their good. In Coted’lvoire coffee growers share mobile phones to follow hourly variations in coffeeprices and sell at the best price.A 2003 survey by the International telecommunication Union (ITU) revealed thatroughly one-third of countries have less than 1 mobile subscription for every 20people. In terms of internet access, roughly half of the countries have less than1 to 20 people with internet access. From this information, as well as educationaldata, the ITU was able to compile a Digital access Index that measures the overall ability of citizens to access and use information and communicationtechnologies.In the Kingdom of Saudi Arabia, majority of the Saudi have PDA ranging from theold to the latest Nokia or Motorola models. The presence of threetelecommunication provider in the Kingdom can hardly keep the heavy traffic ofcalls and messages especially during the peak hours of the day especially duringthe Holy months in the Kingdom. The situation is brought to the attention ofinterested parties to put up the third telecommunication provider in the Kingdom.Bayanat also known as Bayanat Al Oula for Network Services is a Saudi companyestablished in 2005 through a consortium of local investors, Bayanat was licensedby the Communication & Information Technology Commission to provide local,national, and international data communications services. Bayanat Al Oula forNetwork Services is a privately funded and owned by three of the leading  communication firms in Saudi Arabia: Nour Communications, Baud Telecom Company andAl-Harbi Telecom. Bayanat is still on its preparatory stages.1.Current SituationA.EconomySaudi Arabia's economy is petroleum-based; roughly 75% of budget revenues and 90%of export earnings come from the oil industry. The oil industry comprises about45% of Saudi Arabia's gross domestic product, compared with 40% from the privatesector. The combination of relatively high oil prices and exports led to arevenues windfall for Saudi Arabia during 2004 and early 2005. For 2004 as awhole, Saudi Arabia earned about $116 billion in net oil export revenues, up 35percent from 2003 revenue levels. Saudi net oil export revenues are forecast toincrease in 2005 and 2006, to $150 billion and $154 billion, respectively, mainlydue to higher oil prices. Increased oil prices and consequent revenues since theprice collapse of 1998 have significantly improved Saudi Arabia's economicsituation, with real GDP growth of 5.2 percent in 2004, and forecasts of 5.7% and4.8% growth for 2005 and 2006, respectively.B. LegalSaudi Arabia does not have much of a formal criminal code, and thus much of itslaw is derived from an ultra-conservative form of Sunni Islam commonly known as,Washbasin. To that end judges are free to impose capital punishment or corporalpunishment, including amputations of hands and feet for certain crimes such asmurder, robbery, rape, drug smuggling and for various forms of sexual behaviorsuch as homosexuality and adultery. The courts may impose less severepunishments, such as floggings, for less serious crimes against public moralitysuch as drunkenness.The punishments, especially the executions, are carried out in public in order toadd humiliation to the convicted person and also to act as deterrence. Judges aregenerally given a tremendous amount of discretion in deciding how to punish aparticular individual, and will make such decisions based on the particular schoolof Islam that they follow. For example;Theft is punishable by the amputation-only if the thief is not poor and the stolenmoney is not from public sources or a company (must be a private secure money thatwas stolen by well-off adult)- of the right hand. If the right hand has alreadybeen amputated, the left hand is chosen instead.Drinking, selling, or buying alcohol and sniffing drugs or injecting drugs ispunished by a sentence of eighty lashes. Smuggling heroin or cocaine into thecountry is punished by beheading with a sword.Fornication is proven by four righteous witnesses - is normally punished withforty lashes, as is adultery. During flogging, the face, head and vital organs ofthe person are protected. Murder, accidental death and bodily harm are open topunishment from the victim's family. Retribution may be sought in kind or throughblood money. The blood money payable for a woman's accidental death is half asmuch as that for a man.C.GovernmentThe central institution of the Saudi Arabian government is the Saudi monarchy. TheBasic Law of Government adopted in 1992 declared that Saudi Arabia is a monarchyruled by the sons and grandsons of the first king, Abd Al Aziz Al Saud, it alsoclaims that the Qur’an is the constitution of the country, which is governed onthe basis of Islamic law (Shari’a)There are no recognized political parties or national elections, except the localelections which were held in the year 2005. The king's powers are theoreticallylimited within the bounds of Shari'a and other Saudi traditions. He also mustretain a consensus of the Saudi royal family, religious leaders, and otherimportant elements in Saudi society. The Saudi government spreads Islam by fundingconstruction of mosques and Qur’an around the world. The leading members of theroyal family choose the king from among themselves with the subsequent approval ofthe ulema.The government is attempting to promote growth in the private sector by  privatizing industries such as power and telecom. Saudi Arabia announced plans tobegin privatizing the electricity companies in 1999, which followed the ongoingprivatization of the telecommunications company.D.TechnologySaudi Arabia main lines telephone in use as of 2002 has a total of 3,317,500receivers. Saudis who use mobile cellular telephones is 5.008 million. In 2004 theSaudi Telecom Company monopolization was broken by authorizing Etihad Etisalat /Mobily to operate competing with the STC. The Kingdom telephone system ismodernized and upgraded to world class advanced technology. Domestic inter changesmicrowave radio relay and coaxial and fiber-optic cable system international:microwave radio relay to Bahrain, Jordan, Kuwait, Qatar, UAE, Yemen, and Sudan;coaxial cable to Kuwait and Jordan; submarine cable to Djibouti, Egypt andBahrain; satellite earth stations - 5 ntelsat, 3 Atlantic Ocean and 2 IndianOcean, 1 Arabsat, and 1 Inmarsat in the Indian Ocean region. The radio broadcaststations are found at AM 43, FM 31 and SW. There are 6.25 million radio listenersin the entire kingdom. For television the broadcast station is at channel 117 andthere are about 5.1 million daily viewers. In 2005, there are 22 Internetservice providers found in the Kingdom.E.EcologicalShortages of water and rapid population growth may constrain governmentefforts to increase self-sufficiency in agricultural products. Center PivotIrrigation in Saudi Arabia is typical of many isolated irrigation projectsscattered throughout the arid and hyper-arid regions of the Earth Fossil water ismined from depths as great as 1 km (3,000 ft), pumped to the surface, anddistributed via large center pivot irrigation feeds. The circles of greenirrigated vegetation may comprise a variety of agricultural commodities fromalfalta to wheat. Diameters of the normally circular fields range from a fewhundred meters to as much as 3 km (2 miles).The Kingdom has implemented a multifaceted program to provide the vast supplies ofwater necessary to achieve the spectacular growth of the agricultural sector. Anetwork of dams has been built to trap and utilize precious seasonal floods. Vastunderground water reservoirs have been tapped through deep wells. Desalinationplants have been built to produce fresh water from the sea for urban andindustrial use, thereby freeing other sources for agriculture. Facilities havealso been put into place to treat urban and industrial run-off for agriculturalirrigation. These efforts collectively have helped transform vast tracts of thedesert into fertile farmland. Land under cultivation has grown from under 400,000acres (1600 km²) in 1976 to more than 8 million acres (32,000 km²) in 1993.F.Socio-culturalSaudi Arabian culture revolves almost entirely around the religion of Islam.Islam's two holiest sites, Mecca and Medina, are located in the country. Everyday, five times a day, Muslims are called to prayer from the minarets of mosqueswhich dot the country. The weekend consists of Thursday and Friday. The publicpractice of any religion other than Islam, including Christianity and Judaism, thepresence of churches, and open possession of Christian religious materials areonly allowed in places of non-Muslim concentration e.g. foreign army base camps.Public theatres and cinemas are prohibited, as Wahabi tradition deems thoseinstitutions to be incompatible with Islam. However, in private compounds such asDahran and Ras Tanura public theaters can be found, but often are more popular forlocal music, arts, and theatre productions rather than the exhibition of motionpictures. Recently, plans for some cinemas that will be allowed to feature Arabiccartoons for women and children were announced. The cultural heritage iscelebrated at the annual Jenadriyah Cultural festival. During this event, theSaudi national cake, carrot cake, is handed out to visitors.G.Supply chainWithin the kingdom, the supply chain is segmented due to importation of goods andmaterials from another country and regions. Saudi Arabia has less rw materialresources and still lacks the competencies to produce its own materials. That is  why, to solve this dilemma and to address the same concern in other countrieswithin the peninsula, a council was formed to put effect supply chain cooperation.The Cooperation Council for the Arab States of the Gulf formerly named and stillcommonly called Gulf Cooperation Council (GCC) is a regional organizationinvolving the six Arab Gulf states with many economic and social objectives inmind, among the stated objectives are:ãformulating similar regulations in various fields such as economy, finance,trade, customs, tourism, legislation, and administration;ãfostering scientific and technical progress in industry, mining,agriculture, water and animal resources;ãestablishing scientific research centers;ãsetting up joint ventures;ãencouraging cooperation of the private sector;ãstrengthening ties between their peoples; andãestablishing a common currency by 2010, the Khaleen2.Current Situationomarket definition – the entire Kingdom of Saudi Arabia, the Middle Eastcountries, the whole of Asia and the entire world.omarket size – figuratively, close to around 22 million people is the totalnumber of target subscriber once fully operational five years after itsinauguration.omarket segmentation – students, professionals, businessmen, workforceCity namePopulationCommentsRiyadh+ 4,700,000 Capital city / highest populationJeddah+ 3,600,000 2nd largest city / main seaport on Red SeaMecca+ 1,700,000 Holiest city of Islam religionMedina+ 1,300,000 2nd Holiest city of Islam religionDammam+ 1,300,000 main seaport on Persian gulfLocations of other cities in Saudi Arabia where the transmitter are to beinstalled: Buraydah 600,000 people, Dahaban +96,000, Al Hufuf +334,000, HafrAl-Batin, Al Jafer +12,000, Khamis Mushayt 630,000, Al-Mubarraz 550,000, Al Omran+49,000, Al Oyon +33,000ocompetition and market shareTwo existing companies are fully operational, Al Jawal keeps 24% of themarket share, Mobily has 15% share of the market. The third company is yet toinsert itself in the market and still lacking in many facilities. It was supposedto operate on 2005 unfortunately its market share is narrowing and manystockholders are withdrawing their shares. Al Jawal and Mobily are competing onvery small percentage of the market. Many subscribers have complains ranging frompoor network connection to expensive rate of the service. The market is reluctantto remain in one company and if they will have another option, they might leavetheir current telecommunication company.omarket trendsThe demands in telecommunications are definitely increasing and willcontinue to increase in the coming years as more and more Saudis are becomingfamiliar to its advantages and benefit. The business industry finds the use of PDA
Search
Tags
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks