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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: pezz who wrote (40412)	10/29/2003 6:30:57 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

How productivity works. A case in point: I use this example because I work in the mobile sector. <<Rough Waters Ahead for Cellular Base Station Component Market During the next five years, those that sell semiconductor components into the cellular base station market are likely to see their revenues shrink, reports In-Stat/MDR There is no one main reason why base station semiconductor revenue is forecast to decrease over the next five years, but rather many, that when taken together, spell decreasing revenues. These include: - the long life-span of cellular base stations, - increased manufacturing efficiencies, - the lack of exponential customer uptake of new wireless data services, - increasing spectrum efficiency of cellular technologies, and decreasing component prices. Add these factors, and you have a clear picture that points to problems for those companies that manufacture base station components.>> This is how it difficult it is to pinpoint where are the productivity gains. Now if you add other factors, cleverer software to design mobile networks, will add speed and cut costs of designinging and implementing the networks, cheaper and more effective backhaul system (I have an offering from a company from Lavia entering the market with very competitive prices which bundles microwave antennas made form China), slowly you see a price spiral downwards as a result of efficienies and productivity. I know this is a very tiny example, but you get the picture: higher productivity points to deflation. But the positive pint is that any Bangladesh or Ethiopia can afford a top notch mobile network.