The Mobile Telephony Sector Explained

This sector shows just how times change, and how quickly they can change due to technology.

Whilst most sectors on a market have been there since time began, such as banking, the food sectors, and so on, some of them just spring up unexpectedly and can take the market by storm.

Indeed massive companies have arisen in this sector in exactly that way in a way that was hard to predict and no-one did for instance in the 1980s that the mobile market would take off in the way that it has, of course you do need the technology around for the product, but the mass market adoption has surprised virtually all analysts.

Some of the largest companies on stock exchanges are now in this sector, the classic being Vodafone in the UK which is a massive company with an awesome volume of its stock traded each and every day of the year.

With mobile adoption only seeming to go up and up and with more and more products and offerings offered on the mobiles, it would seem that mobiles are here to stay. So does this make the sector a safe bet?

Well, not necessarily - because the regulators have the potential if they ever use it to impose some sort of restrictions on the often extortionate charges imposed for things like making calls overseas and so on and putting pressure on providers to reduce prices, and if one competitor makes a serious price play, then it could start to see the margins on these products coming down.

There is also the chance that new entrants to the market with radically new or better products could suddenly take large market share from one of the others in the sector, so again this is something that is worth considering, and if the future of mobile telephony changes radically again with microchips and so on, this might too have an impact.

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