Cellular Technology: Revolutionizing Communication - Essay Sample

Introduction

Phone/Mobile technology can be termed as a kind of innovation often used in cellular communication as well as other associated facets. Phone technology applies a platform in which numerous transmitters can send and receive massive data simultaneously on one channel, platform called Code Division multiple access (CDMA). Over the years, phone technology has evolved rapidly, and its use is becoming more diverse. It has almost replaced other related sources used in communication, such as landlines. This innovation has gradually improved from what used to be a simple SMS and call device to a gadget with diverse usage including, navigation, gaming, internet browsing, and many other applications. A majority of experts asserts that, if the current trend continues, the future of computer may only rely on wireless and mobile networking.

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Phone technology is mostly used in portable devices called a mobile phone. Mobile phone can be traced back in 1908 after a United States patent was issued for a wireless telephone (History of mobile phones | What was the first mobile phone? 2018). However, the first devices cannot be termed as mobile phones since they were two-way radio transmitters which permitted people, such as cab drivers and emergency services, to exchange information. However, as time progressed and technology advanced, the concepts were developed into sleek, highly portable, and super-fast smartphones that are currently available. Technology, business, and economy are inseparable. Advancement and efficiency of one directly affect the others. As such, this paper will analyze the various impact phone/mobile technology has had on the economy globally.

Impacts of Phone Technology on Economy

The evolution of phone technology saw communication devices that were designed for business use. With time, these were gradually changed into smaller user-friendly gadgets. Blackberry is one of the iconic brands and was associated with executives until the introduction of the iPhone in 2007 (Kayla, 2016). These phones triggered the development of other telephones and mobile-based apps, which changed how people communicate, do business, interact, and even entertain and even learn. Technology can be said to be a critical global economic driver; however, it is only recently that the phones, particularly the smartphones, have had a noticeable impact on major economic factors.

A report by GSMA shows that the phone economy contributed an estimated $2.4 trillion to the global economy in 2013, representing approximately 3.6 percent of the international gross domestic product (Kayla, 2016). Among the impacted areas are employment, where in the United States alone, more than ten million opportunities were created, contributing to about $336 billion to the public funding (Kayla, 2016). The mobile technology is growing at an aggressive pace, and by the end of 2020, it is estimated that it will contribute to more than 5.1 percent of the total global GDP (Kayla, 2016). One of the areas that directly relates the phone technology as an integral part of the economy is the fact that so many people have them nowadays. This is because mobile phones are continually becoming affordable. In 2010, only about 20 percent of the people had access to a phone (Kayla, 2016). However, by 2014, the number was estimated to have increased to 37 percent (Kayla, 2016). If traced back to 2008, upon the introduction of the first Apple phone, the number had tripled by the end of 2014 (Kayla, 2016). In 2020, the number of people with a smartphone has surpassed 3.5 billion, translating to 45.04 percent of the world population (Turner, 2019). Based on these figures, it is hard to ignore the impact and its contribution to the world economy.

Employment

Mobile technology's impact on the global economy and society cannot be questioned, and various researches are currently attempting to quantify it. Mobile technology had generated a value-chain that was estimated to be worth over $3.3 trillion in revenues by the end of 2014, according to a report by the Boston Consulting Group (Takahashi, 2015). Qualcomm, one of the leading global phone chipmaker released a report titled "The Mobile Technology Revolution," which indicated that the companies within the mobile chain invested around $1.8 trillion in research, infrastructure, and development between the years 2009 to 2013 (Takahashi, 2015). Almost all of this funding came from the private sector. The report indicated that by the end of 2020, an additional $4 trillion would have been invested to keep the mobile revolution going (Takahashi, 2015). The report attempted to investigate the impact of mobile technology globally, focusing its effort in the United States, South Korea, Germany, China, Brazil, and India. Boston Consulting Group surveyed more than 7,500 users across the various countries to quantify the benefits the users attain from mobile technology (Takahashi, 2015). From the report, it was confirmed that this technology contributes about $1.2 trillion GPD in the six chosen countries (Takahashi, 2015). Majority of the respondents claimed that they were even ready to forego meals to have a device. They claimed that availability of a mobile device enabled them to connect, research and even source for employment.

With such huge figures, it shows that people heavily rely and spend on mobile technology. As such, it means the companies have to keep on innovating and introducing better devices that will attract the next generation of consumers. As such, they have to employ directly a massive number of researchers, technicians, and developers to meet the demand of the people. Additionally, there is a vast number of people who benefits indirectly, including retailers, advertisers, and even delivery individuals. Other areas that may experience these advantages is the creation and development of mobile based application (Kayla, 2016). Additionally, telecommunication communication companies dealing with other services like credits, data bundles, and internet distribution continuously records higher profits owing to the increased usage of mobile technology.

The net effect of this is, the amount of money being released or used by these firms in research and development directly improves the economies of the countries from which they are operating from. An improved economy means the individuals have high disposable income which results in improved buying power and are even able to traveling. Such improvement means that other countries can benefit from import, including that of labor, raw material, and tourism. The growth in employment, either directly or indirectly, improves the economy, though, revenue and taxes and foreign exchange. This means that their government can afford to deliver better services and improve their social lives. A positive change in GPD translate to a healthier global economy.

Communication

The primary role of phone technology is communication. It is inevitably one of the critical drivers of development in the changing global perspective. With the current drastic changes in the perception of growth and increased use of electronic media, the role of communication in the development has grown tremendously (Kayla, 2016). The term development has of late changed to connote human development through the creation of social and economic opportunities for the people and widening the people's choice to introduce changes in their lives. Phone technology is increasingly becoming a powerful enabler for economic and social development. Being one of the most volatile aspects of ICT phone technology has advanced economic growth and improved social inclusion.

Communication plays a vital role in reducing poverty levels among individuals. A report done on firms in the developing world found that among the 56 developing countries, firms that use improved communication grow faster, invests more, are more profitable and productive compared to those who do not (Kayla, 2016). This is due to the fact that these firms can quickly gather information, entice and advertise their products to customers through messaging. Phone technology enables these firm owners to create a communication network with their suppliers and at the same time with the customers. From the suppliers, they can get some of the latest global trends and relay the same to the customer. Though at a individual level this phenomenon may not have a significant impact, when several firms within a region adopt the same aspect and start growing commercially and economically, the surrounding individuals also develop socially and economically. The economic effect of this is, the growth of these firms means they will buy more from another region, thus bringing forth foreign exchange, which improves the world gross domestic product.

Most of the firms are nowadays turning into multinationals; as such, keeping constant communication is critical. Technologies such as video conferencing and skype have been employed in the over the years. However, the development in mobile technology has introduced a new perspective as they can perform these tasks and others conveniently. Phone technology is becoming more preferred because they are convenient, and chances of getting to someone in seconds are over high. With improved communication, these multinational companies are able to connect with other subsidiary branches and perform businesses. Additionally, mobile technology has enabled these multinationals to employ varied talent from all over the world without the need for offices. This means that individuals can conveniently work from anywhere they want and the flexibility of time. The effect of the is increased profitability and also productivity even in areas which in the past were unexplored.

Marketing

Advertising and marketing have been undergoing rapid changes over a few years. The rapid increase in the reliance of the internet has brought forth a divergence of the users' attention away from the traditional form of media and toward the more digital ones. Though being connected to the internet through a computer was a significant shift, the development on the phone technology to smartphones has created a more dramatic change as smartphone advertisement has become more and more significant (The Brandon Agency, 2017). In the current world, people are connected to the internet from anywhere and anytime they want. As such, mobile technology has had an impact on marketing in the following ways.

Mobile marketing reaches a relatively wider market, meaning companies can convey and even gain more customers quickly. Smartphones and tablets are relatively cheaper, convenient, and smaller. This means that individuals who were previously unable to access and be online are no longer restricted by financial, technological, and geographical barriers. As such, with the development of mobile technology, the marketer has been able to reach consumers globally. On the flip side, consumers are able to view a variety, compare, and even get updates via email and group texts. Additionally, phone technology has introduced the aspect of instant results. In modern times, it is impossible to be anywhere with a phone. In most of these cases, unless under some situation, the phone is always on and the means that individuals can quickly receive messages and calls.

Mobile phones have improved time relevance. The always-on and always ware nature of the mobile gadgets provides more timely response compared to other channels. Furthermore, the use of other services like MMS/SMS and mobile microblogging enables informality, message brevity, as well as spontaneity to allow conversation. In many cases, the response time for a message takes less than that of an email. This...