PEST Analysis on UK Fixed Line Telecommunication industry Essay

PEST Analysis on UK Fixed Line Telecommunication industry - canvass ExampleAs and when this happens, BT will be superiorly poised to leverage its huge infrastructure to add to its revenues. (Prodhan G. and Biilingham E., 2009) salutary like any other market, the UK market has two distinct group of consumers business consumers residing in metropolitan cities who subscribed to high value services, and the vast mass market spread all over the rude who are unwilling/un fit to pay a premium for high value services. While BT has been able to obtain a legal ruling against imposition of Universal Service Obligation that would have demand it to offer unyielding-line connectivity to all UK households, any future imposition of similar clauses by the British Government may pure(a)ly affect its profitability. (Giles C., n.d.)However, the government also believes that Internet connectivity is core to the appendage of the deliverance and given the severe recessionary conditions now, the gov ernment may decide to give a major thrust in change magnitude Internet connectivity. This may turn out to be a major boost to BTs fixed line business. (Holton K. and Prodhan G., January 2009)Additionally, it has been indicated that BT will be free to have its own pricing strategy for the 21CN supper fast full band network. This will help BT increase its profitability. (Parker A. and Fenton B., February 2009)UK has a very stable and matured economy that has teeny scope for a rapid growth. While the national GDP in 2008 was about 1.8 trillion GBP, the growth rate of the economy in 2008 over 2007 was about 3%. The present crisis has hit the economy hard, and the UK economy is expected to shrink by as much as 2%. (UK output, income and expenditure 4th shit 2008, February 2009).However, the government has responded by cutting VAT by 250 percentage points, from 17.5 to 15%. If BT can pass this avail to the end users, it can expect to negate a part of the decline of business due to re cession. Additionally,