Case One businesses rely heavily on mobile telephony and satellite Rural Africa

Question

Case One businesses rely heavily on mobile telephony and satellite Rural Africa Reaches to the sky for Internet Access technology In Africa, only about 16 percent of the population has Sky Vision has stepped into the African market and other access to the Internet. By comparison, emerging markets with customized satellite-based virtual about 63 percent of private networks that are supporting economic development. he population in Europe has Internet access. Furthermore, The VPN allows companies to connect their WAN sites to Internet connectivity is plagued by the low bandwidth, share data and support significantly more efficient unreliability, and high cost. Overcoming this digital collaboration. Through its satellite systems, Skyvision is able divide is not an easy task, as the continent lacks to offer reliable broadband and high-speed data services to terrestrial connectivity between the submarine cables, the most remote locations. the Internet exchange points-the infrastructure For example, only 12 percent of the rural population in Internet service providers CISP) need to exchange traffic Zimbabwe have access to banking services. Banks simply between their different networks-and last mile' delivery cannot provide connectivity to rural areas where 65 percent of the population lives. SkyVision VPN connected the systems. As a result, individuals, organizations, and

Explanation / Answer

a)

Google is offering the use of the fiber optics networks. SkyVision is using satellite based Virtual Private Networks to solve the issue of connectivity.

Fiber Optics Advantages

Fiber optics provides much more bandwidth than copper or other metal cables and thus provides high performance with high efficiency. Fiber optics cables also provide high security as they are difficult to tap. It is one of the most secure medium for transmitting data.

Fiber Optics Disadvantages

Fiber optics are costly and expensive to install. First time cost is very high. Fiber optics cables are also very fragile and prone to damage. They required more protection around them compared to copper or other metallic cables.

Virtual Private Network (VPN) Advantages

VPNs are mostly known for their security advantages. If the need is to keep data private and secure so that no one can snoop in, then VPNs can used. VPNs also allow to bypass any web censorship or surveillance and blocked content may be accessed.

Virtual Private Network (VPN) Disadvantages

Installing and setting up of VPN is quite complex. It required techs with high levels of knowledge of the types of VPN configuration. Also, setting up additional infrastructure requires solutions which will render existing setup incompatible.

b)

SkyVision has support of its satellites through which it can easily provide the internet to far off areas enabling it to reaching emerging markets like Africa before others.

c)

The technologies used by SkyVision is more costlier and harder to maintain as compared to the fiber optics technology used by Google. Since, SkyVision already has set of satellites to provide VPN it is able to provide the technology. But expansion and maintenance of VPNs is quite costly. Whereas, the initial setup cost of fiber optics may be high but they are more reliable and efficient once set up is complete.

d)

Three competitive advantages a bank in Africa can gain by switching from Satellite internet connection to the more reliable fiber optic connection are

1) A Fiber optic cable is more robust and efficient and save up operational cost for the bank.

2) A satellite based VPN network does not provide the speed and bandwidth as fast as a fiber optics network does.

3) Fiber optics cable are here for long term and used by most of the developed countries and thus bank can join the league of banks in those countries.

Two main potential risks with switching to fiber optic communication are

1) Satellite based VPNs provide higher security of data and than a fiber optics network can. It creates a internal private network if any sensitive data needs to be shared. So, switching to fiber optics communications means compromising with this security advantage VPNs provide.

2) Satellite based communication also provide freedom from any web censorship or restrictions imposed and thus can freely access materials on the web.

e) Porter's five competitive forces are :

1) Threat of new entrants

2) Threat of substitutes

3) Bargaining power of customers

4) Bargaining power of suppliers

5) Industry rivalry

Only the first time installation cost of fiber optics is high, once installed these are very reliable, secure and robust. Hence, long term profits are very high with fiber optics and thus would be cheap. Thus, Bargaining power of customers and suppliers would lead a ISP company to adopt to this technology. As once ISP has a strong customers and suppliers base it can offer them services in low prices.

Threat of new entrants, substitutes may lead to hesitation of an ISP company to switch to fiber optics as if some new entrant or substitute starts providing the internet with low rates then people may stop using ISP's services. Now, since company would have spent a lot of money on fiber optics installation it would have to bear huge loss. Also, industry rivalry may stop a company from switching a fiber optics network as VPNs are much more secure than fiber optics and no one can snoop in. Also, fiber optics can be damaged unlike VPNs which use satellite for communication.

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