looking for

Economic factors of mobile communication

Economic analysis focuses on the degree of market freedom, together with the availability and cost of labour and resources. It also focuses on the efficiency of financial markets and the general stability of the exchange rate and economy in general. The telecom industry in general is changing very rapidly due to the continuous improvement of technology and the emerging market conditions compel the company owners to think again and again about the production strategies. Growth of the industry is mainly dependent on the price elasticity of demand and supply of the products, capital formation, etc. (Mishra & Purl, 2007). Thus, the influence of economy on industry success is related with economy influence on price level, inflation, etc. Economic factors affect the purchasing power of potential customers and the firm's cost of capital. These include economic growth, interest rates, exchange rates, and inflation rate. In context of customers' buying power, in many ways Bangladesh is a poor country. With a low GDP per capita and a majority of the population under poverty level, too much of the population, a mobile phone and a network subscription is a luxury. However, the emergence and rapid spread of pay phone stalls utilizing mobile phones, has eased usage somewhat for these customers.