Is the current state of the economy overwhelming you?

With economic issues looming large these days, it is very easy to see only hardship where there may be opportunities. This month and next, we look for greener grass for telecom to see where the growth possibilities lie.

Where do you think telecom is headed? We'd like to know your thoughts. Drop us a note at marketing@vericom.net.

Telecom and the Economy: Part I
By Mike Mitchell

We are certainly reading and see enough about economic hard times. Everyone is looking to the government to do something that works and soon. Reporters are hounding the presidential candidates, demanding a magic bullet to rejuvenate the economy. This month and next, we will examine the impact of the economy on telecom so as to look not only at the downside, but also to explore where things are going well and what opportunities exist for telecom in these down-trodden times.

The downside for telecom

• Matthew Flanigan, president of the Arlington, Virginia-based Telecommunications Industry Association (which represents telecom-manufacturing companies) states, "Among my companies about 600,000 jobs have been lost."
• The Nashuatelegraph.com reports that Verizon has completed voluntary layoffs to reduce the workforce by 10%.
• According to The Economic Times, Embarq Corp, the fourth-largest US traditional telephone company with service in 18 states will cut about 1000 employees and contractors which is about 3-4% of Embarq's work force of more than 17,000.

The telecom industry has been plagued by job loss and struggling companies since 2002 when WorldCom filed for Chapter 11 (the largest such filing in U.S. history until Lehman Brothers in September 2008). Even with all the negative news, there is hope on the horizon.

The upside for telecom

• McClatchy-Tribune Information Services reports that although the weak economy has hurt many companies, MetroPCS Communications Inc. saw its net subscriber growth more than double during this year's third quarter. Over the last year, MetroPCS added about 1.2 million customers.
• The New Jersey Business and Industry Association saw new trends emerging more than two years ago when it reported that "In the telecom sector, most of the telecom losses have come from the heavily regulated wired sector, but these losses are being offset by growth in wireless technology, fiber optics, and voice-over-the-Internet protocol."
• Louise Goss-Custard, a managing director at recruiting firm Russell Reynolds, says that 60% of human-resources managers at 35 large telecommunications companies she recently interviewed believe the industry has begun to recover from the [industry] woes. Translating into a small but steady stream of new job postings, particularly from start-up companies, companies emerging from bankruptcy or those in hot new areas like wireless communications, voice-over Internet telephony and 'wi-fi', or wireless computing.

What is really happening to telecom?
Change is inevitable. Change is also uncomfortable and often painful. Without change, industries, products and services fade away leaving only memories, both good and bad. Telecom has changed and continues to change. Just as the 4 lb. gym bag sized mobile phones seem prehistoric compared to Apple's iPhone, the telecom industry is always moving forward with an eye on innovation, emerging markets, and satisfying current demands.

In Part II, I'll explain at least one reason for the current economic situation and what's driving the demand for the next hot technology or got-to-have products in telecommunications.

- Mike

Dear Mike: As a department manager, I spend almost all of my time scheduling daily activities, working with the staff, and making sure the department runs smoothly. I feel like I'm not keeping up with technology. How can I keep up to speed when I don't have a lot of time?

Mike's Answer: One of the best ways to maintain your knowledge level is to read industry publications. There are a plethora of free publications, newsletters, and whitepapers available. Check out Physorg.com, Tech Republic, or TMC. The October 20th issue of Business Week had an article on a new wireless web phone for less than $50 and a review of the new RIM Blackberry Storm.

Here are some tricks to help you speed through the technical articles:

• Set aside 15 to 20 minutes of uninterrupted time each day for reading - With careful planning and discipline, you could find at least 60 minutes each week to review new information.
• Read selectively - Peruse the table of contents for applicable articles. Decide which articles will benefit you most. Use your time wisely by focusing on articles directly relating to your needs.
• Skim the text for relevant information - Many articles contain fluff or go off on a tangent. Learn to discern the main point(s) of the text and concentrate on them.
• Resist the temptation to save magazines - When you find a relevant article but can't read it right away, carefully remove the article, then discard the magazine. Saving magazines creates clutter when the periodicals pile up in a corner of your credenza. Having too many unread magazines can create confusion when you try to decide which to read next.

- Mike

Have a question for Mike? Email him at mike@telexcellence.com.

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