International Journal of Business and Economics Research

Submit a Manuscript

Publishing with us to make your research visible to the widest possible audience.

Propose a Special Issue

Building a community of authors and readers to discuss the latest research and develop new ideas.

Research Article |

Telecommunications in the Midst of Two Crises: 2008-2020

This research deals with a pervasive general purpose technology and an economic resource of huge value founded on innovation, subject to rapid changes and obsolescence, a capital-intensive industry and high-revenue industry. The study addresses from a general and company perspective the impact on the telecommunications of the shock hitting the world economy with exceptional virulence, size and extent unseen in the last eight decades. The text consists of three main sections which analyses a broad issue -telecommunications in the world- and two specific points -the companies' response to the crisis and one particular path, namely, mergers and acquisitions. It is built on different sources from major institutions and big companies. The 2008 global financial crisis adversely hit mergers and acquisitions, causing a sharp decline in these markets, which did not recover before 2014. Nevertheless, after the downturn, the emerging market countries benefited from the attractive asset prices in advanced countries and expanded their acquisitions abroad. This research contributes to general knowledge that telecommunication sector faces both common and industry risk factors. The analysis at companies’ level finds the importance of specific factors derived from the nature of the companies in question, independent of specific shocks.

Telecommunications, Crises, Mergers and Acquisitions

APA Style

Calvo, Á. (2023). Telecommunications in the Midst of Two Crises: 2008-2020. International Journal of Business and Economics Research, 12(6), 185-196. https://doi.org/10.11648/j.ijber.20231206.13

ACS Style

Calvo, Á. Telecommunications in the Midst of Two Crises: 2008-2020. Int. J. Bus. Econ. Res. 2023, 12(6), 185-196. doi: 10.11648/j.ijber.20231206.13

AMA Style

Calvo Á. Telecommunications in the Midst of Two Crises: 2008-2020. Int J Bus Econ Res. 2023;12(6):185-196. doi: 10.11648/j.ijber.20231206.13

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

1. Afzal, Farman et al., “Impact of Global Financial Crisis 2008 on Automobile Industry,” Research Journal of Finance and Accounting, 4(2), April 2013, pp. 136-145.
2. AT&T, Annual Report 2017.
3. AT&T, Annual Report 2015.
4. AT&T, Annual Report 2013.
5. AT&T, Annual Report 2009.
6. AT&T, Annual Report 2007.
7. AT&T Inc. Annual Report, 2012.
8. Bauer, Johannes M., “Changing Roles of the State in Telecommunications,” International Telecommunications Policy Review, Vol. 17, No. 1, 2010, pp. 1-36. https://ssrn.com/abstract=1837320
9. BKD Capital Advisors, Telecommunications merger & acquisition perspectives, BKD Capital Advisors, Denver Co, 2019, pp. 2-11.
10. Briscoe, Peter, “The Open Telecommunications Services Model,” Annual Review of Communications, Vol 59, 2006, pp. 3-6.
11. Caballero, Laura, “Spain's Second Digital Dividend and the Paradox of Broadcasters,” Ars Iuris Salmanticensis, Vol 10, 1, 2022, pp 27-31.
12. Caylar, Paul-Louis and Ménard, Alexandre, “How telecom companies can win in the digital revolution,” Digital McKinsey, 3 October 2016, pp. 1-7.
13. Chanakira, Maxwell, “The impact of the financial crisis on the telecommunications industry in Africa,” African Journal of Business and Economic Research, 17-18 May, 2012, pp. 1-20.
14. Chernenko, Natalya et al., “Analysis of mergers and acquisitions between 2009 and 2020,” Revista Galega de Economía, 30 (4), 2021, pp. 1-18.
15. Cho, Sangjun, and Chune, Young Chung. “Review of the Literature on Merger Waves,” Journal of Risk and Financial Management, 15, 432, 2022, pp. 1-21. https://doi.org/10.3390/jrfm
16. Comisión del Mercado de las Telecomunicaciones, 2012 Financial and Industry Report, CMT, Barcelona, 2013.
17. Comisión del Mercado de las Telecomunicaciones, 2013 Financial and Industry Report, CMT, Barcelona, 2014.
18. Comisión del Mercado de las Telecomunicaciones, Informe anual 2008, CMT, Barcelona, 2008.
19. Comisión del Mercado de las Telecomunicaciones, Economic Report on telecommunications and Audiovisual Sector 2011, CMT, Barcelona, 2011.
20. Comisión Nacional de los Mercados y la Competencia, Telecommunications and Audiovisual Industry Economic Report 2016, CNMC, Barcelona, 2017.
21. Cunningham, Colleen, Ederer, Florian and Ma, Song, “Killer acquisitions,” Journal of Political Economy, 129(3), 2020, pp. 649-702.
22. Czinkota, Michael R., Ronkainen, Ilkka A. and Moffett, Michael H., International business, The Dryden Press, Orlando FL, 1997.
23. Curwen, ‎ Peter and Whalley, Jason, Fourth Generation Mobile Communication: The Path to Superfast Connectivity, Springer, Cham, 2013.
24. Dal Yong, Jin, “The Telecom Crisis and beyond: Restructuring of the Global Telecommunications System,” International Communication Gazette, 67, 3, pp. 289–304.
25. DePamphilis, Donald, Mergers, Acquisitions, and Other Restructuring Activities: An Integrated Approach to Process, Tools, Cases, and Solutions, Academic Press, London, 2019.
26. Deutsche Telekom, Annual Report 2020.
27. Deutsche Telekom, Annual Report 2018.
28. Deutsche Telekom, Annual Report 2017.
29. Deutsche Telekom, Annual Report 2015.
30. Deutsche Telekom, Annual Report 2014.
31. Deutsche Telekom, Annual Report 2010.
32. Deutsche Telekom, Annual Report 2009.
33. Deutsche Telekom, Annual Report 2008.
34. Deutsche Telekom, Annual Report 2007.
35. Directorate for Financial and Enterprise Affairs, IMF Committee on balance of payments statistics and workshop, OECD, May 2004.
36. European Commission, Telecommunication Comprehensive sectoral analysis of emerging competences and economic activities in the European Union, European Commission, Brussels, 2009, pp. 8-9.
37. European Commission, Economic Crisis in Europe: Causes, Consequences, and Responses, Office for Official Publications of the European Communities, Luxembourg, 2009a.
38. European Commission, The 14th Progress Report on the Single European Telecoms Market 2008: Frequently Asked Questions, MEMO/09/132, Brussels, 25 March 2009b.
39. Ghauri, Pervez N. and Buckley, Peter J., “International mergers and acquisitions: Past, present and future,” Advances in Mergers and Acquisitions, Vol. 2, Emerald, Bingley, 2003, pp. 207-229.
40. Gautam, Omvir, Singh, Vinod K. and Sharma, R., “Global Recession and Its Impact on Telecommunication Industry: An Empirical Dissection,” International Journal of Management and Business, 5 (2), 107-116, 2015, pp. 107-116.
41. Gershon, Richard A., Media, Telecommunications and Business Strategy, Routledge, London, 2020.
42. Goldstuck, Arthur, The Mobile Office: The Essential Small Business Guide to Office Technology, Juta and Company Ltd, Cape Town, 2009.
43. Gruber, Harald and al., “Mobile telecommunications and the impact on economic development”, Economic Policy, Vol. 26, No. 67, July 2011, pp. 387-426.
44. GSMA, Tarification du spectre. Positions de politique publique de la GSMA, GSMA, London, 2017.
45. GSMA, Effective Spectrum Pricing: Supporting better quality and more affordable mobile services, GSMA, London, 2017.
46. Hamel, Gary and Prahalad, Coimbatore K., Competing for the future, Harvard Business School Press, Brighton MI, 1996.
47. Herciu, Mihaela & Ogrean, Claudia, "Financial Risks – A Case Study For Automotive Industry," Studies in Business and Economics, 8(3), 2013, pp. 50-55.
48. Hernandez, Exequiel and Menon, Anoop, “Acquisitions, node collapse, and network revolution,” Management Science, 64(4), 2018, 1652-1671.
49. Herrera, Fernando, “Are cross-border mergers the solution to the telecoms problem?,” Telefónica Public Policy Newsletter, 7 August 2023.
50. IMF, Impact of the Global Financial Crisis on Sub-Saharan Africa, IMF, Washington, 2009.
51. Inwit, Integrated Report, 2021.
52. ITU, “ICT and the Global Economic Crisis: Current Situation and Future Perspectives”, Third Parliamentary Forum on Shaping the Information Society, 3-5 May 2010, ITU, Geneva, 2010, pp. 1-5.
53. ITU, Confronting the Crisis: Its Impact on the ICT Industry, ITU, Geneva, 2009. www.itu.int/crisis2009/
54. ITU, Corporate Annual Report, 2008.
55. Kang, Nam-Hoon and Johansson, Sara, “Cross-Border Mergers and Acquisitions: Their Role in Industrial Globalisation,” OECD Science, Technology and Industry Working Papers, No. 2000/01, OECD, Paris, 2000. https://doi.org/10.1787/137157251088
56. Langbein, Julia, Transnationalization and Regulatory Change in the EU's Eastern Neighbourhood: Ukraine between Brussels and Moscow, Routledge, London-New York, 2015.
57. Lear, DIW Berlin and Analysys Mason, Economic impact of competition policy enforcement on the functioning of telecoms markets in the EU. Final report, European Commission, Brussels, 2017.
58. Liu, Xiuling, Cai, Li and Tan, Huiping, “International Technology Mergers & Acquisitions and Raising the Competitiveness of China Equipment Manufacturing Industry,” Technology and Investment, Vol. 3 No. 1, 2012, pp. 7-12.
59. Macmillan, Iain, Purowitz, Mark and Prakash, Sriram, The path to thrive: M&A strategies for a brave new world, Deloitte, Georgetown CT, 2023.
60. Malik, Muhammad F., Anuar, Melati A., Khan, Shehzad and Khan, Faisal, “Mergers and acquisitions: A conceptual review,” International Journal of Accounting and Financial Reporting, 4(2), 2014, pp. 520-533.
61. Nemertes Research Group, The Internet Singularity, Delayed: Why Limits in Internet Capacity Will Stifle Innovation on the Web, Nemertes, Mokena Il, 2007.
62. Nützenadel, Alexander, “The financial crisis of 2008—Experience, memory, history,” Journal of Modern European History, 19(1), 2021, pp. 3–7. https://journals.sagepub.com/doi/10.1177/1611894420973590
63. OECD, “The economic and social role of Internet intermediaries,” OECD, DSTI/ICCP (2009)9/FINAL, April 2010, p. 4.
64. OECD Communications Outlook 2009, OECD, Paris, 2009.
65. OECD Communications Outlook 2001, OECD, Paris, 2001.
66. OECD Information Technology Outlook 2008, OECD, Paris, 2008.
67. OECD, The impact of the crisis on ICTS and their role in the recovery, OECD, Paris, 2009.
68. Park, Myeong-Cheol et al. “Mergers and Acquisitions in the Telecommunications Industry: Myths and Reality,” ETRI Journal, Volume 24, Number 1, February 2002, pp. 56-64.
69. Plunkett Research Ltd., “Telecommunications Industry Overview,” Internet Engineering Task Force, 2010.
70. Reddy, Kotapati S., Nangia, Vinay K. and Agrawal, Rajat, “The 2007–2008 Global Financial Crisis, and Cross-border Mergers and Acquisitions,” Global Journal of Emerging Market Economies, 6(3), 2014, pp. 257–281. https://doi.org/10.1177/0974910114540720
71. Roeller, Lars-Hendrik and Waverman, Leonard, “Telecommunications Infrastructure and Economic Development: A Simultaneous Approach,” American Economic Review, 91(4), 2001, pp. 909-23.
72. Saksela, Henrik and Smura, Timo, “Radio Spectrum Policy In Europe,” in Sakari Luukkainen (ed.), Innovation in Telecommunications, Proceedings of the Research Seminar on Telecommunications Business, 2006, pp. 55-61.
73. Scott, Robert E., “Steel industry hit hard,” Economic Policy Institute, 13 January 2009, p. 1.
74. Seker, Sadi E. and Georgievski Bojan, “Financial Crisis and the ICT Industry, Cross Market Research on Europe, US, Turkish and Gulf Countries,” Research Journal of Finance and Accounting 5(24), December, 2014, pp. 78 – 87.
75. Serrat, Olivier, “Learning in Strategic Alliances,” Knowledge Solutions, 62, September 2009, pp. 1-19.
76. Spencer, E. Ante, “Debt-Heavy Telecoms Won't Escape the Credit Crunch,“ 20 October 2008.
77. The Financial Crisis Inquiry Commission, The financial crisis inquiry report, GPO, Washington, 2011, pp. xvi-xvii.
78. Tyagi, Kalpana, “Four-to-Three Telecoms Mergers: Substantial Issues in EU Merger Control in the Mobile Telecommunications Sector,” IIC - International Review of Intellectual Property and Competition Law, 49(3), February 2018, pp. 1-36.
79. Uchitelle, Louis, “Steel Industry, in Slump, Looks to Federal Stimulus,” The New York Times, 1 January 2009.
80. United Nations Conference on Trade and Development, World Investment Report 2008: Transnational Corporations and the Infrastructure Challenge, United Nations, New York and Geneva, 2008.
81. Vlasjuk, V., “Steel industry after the year of crisis: the way passed and outlook for recovery,” 7th Session of the OECD Steel Committee Meeting, Paris, 10-11th December 2009, pp. 1-8.
82. Walker, Paul and Hanna, David. “What makes a merger successful?,” Strategic Finance, 80 (10), 1999, pp. 58-62.
83. Warf, Barney, “Mergers and Acquisitions in the Telecommunications Industry,” Growth and Change, 34, 3, 2003, pp. 321-344.