Professional Documents
Culture Documents
College of Communication
Department of Communication Research
NDC Campus Anonas Street Sta. Mesa, Manila
Alarcon, Ariza
BACR 1-1 2019-08075-MN-0
alarcon.ariza.m1@gmail.com
Cabonita, Joanne Marie
BACR 1-1 2019-09934-MN-0
cabonita.joannemarie1@gmail.com
Mantilla, Al Francis Deniel
BACR 1-1
mantilla.alfrancisdeniel1@gmail.com
Nolasco, Alexis Louise
BACR 1-1 2019-10851-MN-0
nolasco.alexislouise1@gmail.com
U’ren, Julie Andrew
BACR 1-12019-09322-MN-0
urenjulieandrew1@gmail.com
1.0 Introduction
With the growth of the technology and innovation in todays society, many argued that the future
is at present and the success of these experiences is all thanks to the invention that changed the
world. From the emergence of scientific revolution that produces the understanding of the world
and the universe, to the cultivation of agriculture in the agricultural revolution that opens
economical growth in the plantation industry and the creation of steam engines that powered the
future in mechanics from the industrial evolution, all of them brought fortune onto days society
with its development, but the most powerful tool that was invented that created lines of
telecommunications.
In basic terminologies, According to Rouse and Lazar (2015) Telecommunications, also known
as telecom, is the exchange of information over significant distances by electronic means and
refers to all types of voice, data and video transmission. This is a broad term that includes a wide
fiber optics, satellites, radio and television broadcasting, the internet and telegraphs. It came
from the Greek Prefix ‘tele’, which means Distant, combined with the Latin word Communicare,
But in the aspect of understanding this innovation in the society, Telecommunications connected
people afar from each other, bringing information and datas to an extent convince. With its
invention, one can send their thoughts to one another in just a snap, a simple dial on the phone or
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a simple signal arrangement. In its earlier years, telecommunications was used in military for
surveillance purposes and also for good coordination with one another. It was still used to create
good coordination in today’s society but it also brought us entertainment, news, information and
knowledge that cannot be obtained without the power of telecommunication at a fast rate. It is
an information, innovation and development source super hi-way that connects individuals not
of a camp.In 1792, a French engineer, Claude Chappe built the first visual telegraphy (or
semaphore) system between Lille and Paris. This was followed by a line from Strasbourg to
Paris. In 1794, a Swedish engineer, Abraham Edelcrantz built a quite different system from
beams of wood, Edelcrantz's system relied only upon shutters and was therefore faster. However,
semaphore as a communication system suffered from the need for skilled operators and
expensive towers often at intervals of only ten to thirty kilometers (six to nineteen miles). As a
2.1.2. Telegraph System. Telecommunications began with the successful innovation of Samuel
connected New York and Philadelphia) and were rapidly growing. Telegraph expansion
paralleled and aided the growth of the America’s network of railroads. The latter provided a
prepared right of way, while the former offered vital communication links for the often
single-track networks that moved people and goods. The first coast-to-coast telegraph line was
opened in 1862 (seven years before rail links extended that far) and immediately made money,
2.1.3. Early Corporate Alliances. Western Union, the first telecommunications monopoly, was
formed as a regional alliance of several smaller firms in 1856 and rapidly expanded, often
following railway lines. Just a year later the six largest telegraph companies developed a cartel,
dividing up the country and business among themselves. The Civil War demonstrated the value
of telegraph links (the Union was far better equipped than the Confederacy) and drove up rates
and company profits. Western Union took over some 15,000 miles of government-built lines at
the end of the war and became by far the largest company in the field.
2.1.4. International Telegraph Systems. Telegraph systems initially served only land routes, as
it was presumed impossible to lay lines underwater. After experiments running insulated
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telegraph lines under lakes and across rivers, in 1858 an American-led consortium laid the first
cable connecting Britain and the United States, which eventually failed in few months. After a
failed attempt to lay a cable in 1865, success came in 1866; soon others were added. The Pacific
was not crossed until 1902 because of the great distances involved. Availability of global
telegraphy rapidly changed the face of business and government affairs. The ability to "instantly"
communicate had great positive impact on business and other human aspects of daily life.
2.1.5. Birth of Telephone. Success of telegraph industry and rising electrical manufacturing
1878, and demonstrated its greater efficiency over individual lines between each customer. The
first use of telephone numbers and directories of telephone users appeared about the same time.
Telephone exchanges (using many switchboards) appeared about two decades later.
Telephone was largely the creation of Alexander Graham Bell, who received his first patent in
March 1876. Early development of the telephone was fraught with technical and financial
problems. Alexander Graham Bell held the master patent for the telephone that was needed for
such services in both countries. The technology grew quickly from this point, with inter-city
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lines being built and telephone exchanges in every major city of the United States by the
mid-1880s.
Restricted by crude technology to providing local service (initial iron wires rarely extended 100
miles), telephone service developed slowly before the Bell patents expired in 1893. Initial Bell
business strategy focused on licensing use of its patents and selling equipment to companies
building systems in cities and towns, largely to serve business and the wealthy.
telephone operators were sending business to his competitors, developed the first mechanically
automated telephone switch in 1891. The first automated switches began to appear around the
turn of the century in major cities—and would be used in smaller communities for decades.
Copper telephone lines were placed in use between Boston and New York, extending telephone
service to 300 miles. Around 1893, the country leading the world in telephones per 100 persons
(teledensity) was Sweden with 0.55 in the whole country but 4 in Stockholm (10,000 out of a
total of 27,658 subscribers). This compares with 0.4 in USA for that year. Telephone service in
Sweden developed through a variety of institutional forms: the International Bell Telephone
Company (a U.S. multinational), town and village co-operatives, the General Telephone
Company of Stockholm (a Swedish private company), and the Swedish Telegraph Department
(part of the Swedish government). Since Stockholm consists of islands, telephone service offered
relatively large advantages, but had to use submarine cables extensively. Competition between
Bell Telephone and General Telephone, and later between General Telephone and the Swedish
In 1893, the U.S. was considerably behind Sweden, New Zealand, Switzerland, and Norway in
teledensity. The U.S. rose to world leadership in teledensity with the rise of many independent
telephone companies after the Bell patents expired in 1893 and 1894.
war missile race, the world's first artificial satellite came just
12 years later as the Soviet Union launched Sputnik into a low Earth orbit in October 1957. Early
military satellite communications followed the same low-orbit path until the first commercial
two-way radios or as portable phones by being patched into the telephone network.
Bell Labs developed the notion of "cellular" systems allowing for frequency reuse (and thus far
greater capacity) and developed it through the 1970s. On April 3, 1973 Motorola manager Martin
Cooper placed a cellular phone call (in front of reporters) to Dr. Joel S. Engel, head of research
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at AT&T's Bell Labs. This began the era of the handheld cellular mobile phone. Meanwhile the
1956 inauguration of the TAT-1 cable and later international direct dialing were important steps
in knitting together the various continental telephone networks into a global network. The FCC
approved operation of an analog cellular mobile telephone system in 1982, sparking a new
growth sector.
2.1.9. Cable Television Companies. Cable television companies began to use their
fast-developing cable networks, with ducting under the streets of the United Kingdom, in the late
1980s, to provide telephony services in association with major telephone companies. One of the
early cable operators in the UK, Cable London, connected its first cable telephone customers in
about 1990.
with AT&T's introduction of its T1 Carrier System in 1962. A T1 line offered far more capacity
and a cleaner (less noisy) signal. Soon digital telephone switches appeared, allowing for a more
flexible network design and operation. But the most sweeping change came with the installation
of fiber-optic cables to carry voice, data, and video signals. The huge carrying capacity of
networks well ahead of projected growth (and planted the seeds for disaster in the early 2000s).
terminals remained popular throughout the 1950s. However, it was not until the 1960s that
researchers started to investigate packet switching — a technology that would allow chunks of
data to be sent to different computers without first passing through a centralized mainframe. A
four-node network emerged on December 5, 1969 between the University of California, Los
Angeles, the Stanford Research Institute, the University of Utah and the University of California,
Santa Barbara. This network would become ARPANET, which by 1981 would consist of 213
nodes. In June 1973, the first non-US node was added to the network belonging to Norway's
Two popular link protocols for local area networks (LANs) also appeared in the 1970s. Internet
access became widespread late in the century, using the old telephone and television networks.
The Internet, based on government networks dating back to 1969, became a widely used public
network in 1995. Development of the World Wide Web and the graphic user interface making it
possible opened up a wealth of expanding information resources and growing public acceptance.
By the early 2000s, more than half of American households were connected to the Internet, a
slowly growing number of them linked by broadband connections. Projections of Internet growth
sparked bullish plans for the underlying telecommunication services and manufacturing that
made the Web possible. Many of those projections were wide of the reality.
2.1.12. Internet Protocol (IP) Telephony. Internet Protocol (IP) telephony (also known as
'Internet telephony') is a service based on the Voice over IP communication protocol (VoIP), a
disruptive technology that is rapidly gaining ground against traditional telephone network
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technologies. In Japan and South Korea up to 10% of subscribers switched to this type of
addition to replacing the traditional Plain Old Telephone Service POTS system, IP telephony is
also competing with mobile phone networks by offering free or lower cost connections via WiFi
hotspots. VoIP is also used on private wireless networks which may or may not have a
and the Philippines. ” that was created to evaluate and compile the history of telecommunication
in Asia: Two private companies offered telecom services namely Eastern Extension Australasia
and China Telegraph Company which is a subsidiary of Britain's Cable and Wireless. The
Spanish authorizes Eastern Extension to construct and operate the first submarine cable linking
1932, the colonial Philippines congress granted PLDT a 50-year franchise to operate a national
telephone system.
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2.2.2. Initially, PLDT was managed by Americans, including the American company General
Telephone and Electric Corporation (GTE) as a major stockholder. However, in March 1967,
GTE disposed of their 28% controlling interest in PLDT. Which is why in November 7, 1967,
GTE's controlling interest. Ramon Cojuangco, who was part of one of the most influential clans
in Philippine history, was a main incorporator. PTIC formally took control of PLDT on January
1, 1968. This led to the takeover of PLDT by the Filipinos, becoming a dominant player in
Philippine Incorporated (ETPI) in 1974. Eventually, they restructured its ownership, with
● Globe Mackay Cable and Radio Corporation (GMCR) was established in 1928 which is
owned by the Ayala family, which is one of the oldest and most established elite families
in the country.
● Capitol Wireless Inc (Capwire), established in 1962, which is owned by the Santiago
family which is also the group which owned Retelco, then-second largest telephone
company.
● Philippine Global Communications (Philcom) was established in 1977. During the term
In 1976, the Philippine Association of Private Telephone Companies was organized to protect
the interest of small telephone companies. By 1975, around 60 small telephone companies
provided 11.7% of the total telephone capacity at the time. These small companies were
dependent on PLDT to place inter-provincial and overseas calls, in which PLDT used this
2.2.3. Martial Law Development. Marcos' Presidential Decree 217 in 1973 mandated all PLDT
subscribers to invest in PLDT to raise its equity and finance its expansion program. This law,
known as the Subscribers Investment Plan (SIP) required all PLDT subscribers to buy nonvoting
shares in the company. Mandatory investors held about 85 % of the total company equity shares
2.2.4.Developments under Aquino. The Aquino government's policy was two-pronged: it was to
increase public spending in underserved or unserved municipalities, and allow entry of new
players. In 1987, the DOTC adopted a series of policies aimed at rationalizing the development
of the industry. This led to the reversal of Marcos' push towards the integration of the
telecommunications system under a monopoly. It also affirmed that development of the national
telcos needs an introduction of competition and regulated entry into the market. During the end
of Cory’s therm however, telecommunications was poor but PLDT prevailed with their tactics in
2.2.5. Liberalization Under the Ramos administration, a coalition named the Movement for
Reliable and Efficient Phone System (MORE Phones) was formed with the goal of liberalizing
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the telecommunications industry. Until the mid-1990s, MORE Phones continued to pressure
2.2.6. In 1994, the NTC and several other industry players devised the Service Area Scheme
(SAS) This scheme was in response to imbalanced demand of telecom companies in urban areas
over rural areas.The SAS attempted to allow companies to earn profits but also ensure that part
of those profits would be channeled to serve less profitable areas. Companies were allocated both
profitable and unprofitable areas to ensure operational viability and the provision of rural
telephony.
2.2.7.New Players
into the Philippine’s liberalized market. In 1994, Globe launched its digital cellular services,
pioneering the use of Global System for Mobile Communications Technology (GSM). In fact,
Globe popularized the short messaging service (SMS) through adding it for free with their basic
services.
subsidiary. Smart was financially supported by First Pacific. This partnership resulted in a rapid
construction of Smart’s network and more importantly, the subsidization of handsets. Smart was
also authorized to offer both international gateway and cellular telephone services. At the end of
2005, Smart became the largest cellular operator in the Philippines with over 15.4 million
subscribers.
3.0 Audience
● Network operators
● Telecom infrastructure
● Billing companies
Recently, there are many changes occurring in the telecom industry which can easily be
attributed to the advancement in technology. High rates of growth are being forecasted for this
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fastest growing market. Telecom companies and virtually all businesses that access telecom
networks will feel both the immediate as well as far-reaching impacts because of these major
advancement of the society are experiencing in the emergence of technology. She especified 5
things that the innovation of telecommunications will develop for the next few years,
advancements in security and growth of data centers for sufficient telcom service.
we have from our home to work to our car to even the heart monitors.
Since IoT is a new territory for telecommunication companies and mobile operators, it can prove
Apart from providing services and investing on valuable user data from IoT devices, telecom
companies will invest more in building infrastructure committed to providing 5G and secure
carrier-grade WIFI networks along with transferring a large amount of data securely.
Platform-based Services
Another big trend of this year which got everybody into talking is the rise of platform-based
services. Since one of the challenges, today faced by the telecom industry is that of stagnating
revenues, more and more operators are shifting from connectivity providers to platform
5G Wireless
5G is not only important because of its lead role in next-generation IoT and M2M applications
such as augmented/virtual reality and autonomous vehicles but also because it is essential to
meet the ever-increasing demand for higher data rates and capacity.
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We will also witness a significant increase in the number of research connected to 5G networks
along with lots of advancements from other industries such as agribusiness, energy, and
Internet TV is another hot trend of this year which is made possible due to the rise of content
along with streaming services such as Netflix, Amazon Prime, and Google YouTube premium.
Because of this, telecom operators are on the lookout for new business models that are based on
content along with heavy investments in software and platform development and merging with
content providers.
Cloud Computing
therefore have heavily invested) in this technology due to its efficiency, convenience and
Cloud services have enabled telecom industry that offer call center services to deliver cloud
capabilities, manage connectivity and leverage network assets in order to enhance computing
Network Security
Last year was full of news about data breaches in some high-end companies which have
prompted network providers to come up with more robust protection techniques rather than data
Focus on network security this year will be more important for telecom industry than ever
before, which will be processed through the shift in encrypted data from a niche play to more
pervasive technology.
Data Centers
industry will continue to integrate cloud computing into its IT operations, besides managing
increased data, more and more focus will shift toward improving the current underlying
infrastructure,
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The demand for smart data center solutions will continue to grow in the upcoming years and as a
result, telecom operators providing BPO services India and other such developing countries will
be pressurized to deliver faster data along with more flexibility than ever before.
In today’s increasingly connected ecosystem of digital products and services, mobile phones
remain the central point and telecommunications, the keystone sector of connected networks
such as IoT, personal connectivity, smart cities etc. and traditional telecommunication values and
related assets, this year, will give rise to rapidly changing technologies, customer preferences and
proposed regulations.
On the book Telecommunications Essentials: The Complete Global Source for Communications
Fundamentals, Data Networking and the Internet, and Next-Generation Networks of Lilian
Golenski (2001) she elaborated the emerging growth of innovation with the booming
c. Virtual touch, or haptics, enables a user to reach in and physically interact with simulated
computer content.
into computers.
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e. The visual information stream provides the most rapid infusion of information, and a
Devices are becoming smaller and more powerful all the time, and they're getting physically
closer to our bodies, as well. The growing amount of intelligence distributed throughout the
communications. Today, there are just over 6 billion human beings on the planet, yet the number
Sharing of information can occur in a number of ways—via smoke signals, by letters sent
through the postal service, or as transmissions through electrical or optical media, for example.
The new traffic patterns imply that the network will also be host to a new set of
applications—not just simple voice or text-based data, but to new genres of applications that
New developments always bring with them politics. A prominent characteristic of the
regulation. The forces these exert on the sector are inextricably tied to technological and market
forces.
have been proved to be growing and it will continue to grow further in the future.”. On his
meeting on the Malacanang Palace in 2017 according to Ranada, Pia (2017) on her report in
Rappler: President Duterte highlighted the need for better telecom services in 2016 and
mentioned that he would like a third telecom carrier to operate in the country. The president
blamed the duopoly for the country’s poor telecom services, and slow internet speed.
Globe has announced US$ 1.2 billion Capital Expenditure in 2019, while PLDT will invest US$
1.5 billiom. MISLATEL is expected to invest US$800 million in the next five years as part of its
infrastructure. Converge ICT has announced a US$ 1.5 Billion, five-year expansion of its fixed
broadband capabilities. Converge has committed to lay its own Fiber Optic network and
domestic sub-sea cable. PT and T plans to upgrade its core network, expands its fiber footprint,
PLDT and Globe have announced 5G partnerships; Globe with Huawei and PLDT with Nokia
for 5G in Universities, and with CHISCO “helps transform its fiber transport network into a fully
automated, software-defined 5G ready IP transport network over the next three years.”
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References
CNN Philippines (2019). “PH takes top spot as heaviest internet users worldwide — report”
Retrieved from
https://cnnphilippines.com/lifestyle/2019/02/01/2019-digital-hootsuite-we-are-social-internet-phi
lippines-facebook.html
Ranada, Pia (2017) “Duterte wants Chinese company to be 3rd PH telecom player”
retrived from https://www.rappler.com/nation/188979-duterte-chinese-company-3rd-ph-telco
Richman, J. (2017). “Philippines: A Digital Lifestyle Capital in the Making?” Retrieved from
https://www.huffpost.com/entry/philippines-a-digital-lif_b_7199924
Smart (2019) “PLDT, Cisco team up for 5G-ready IP transport network” retrived from
https://smart.com.ph/About/newsroom/press-releases/2019/04/12/pldt-cisco-team-up-for-5g-read
y-ip-transport-network
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Tiglao, R. (2016). “Colossal deception: how foreigners control our telecoms sector: a case study
of corruption, cronyism and regulatory capture in the Philippines”, p. 9, Strong Republic Books
and The Manila Times Publishing Corp.