Voice over Internet Protocol Is a telecommunication method in which voice packets are sent in a computer-serviced as analog telephone adaptor which allows you to connect a phone to your internet connection converting traditional phone lines into digital data transmission; IP Phones are specialized phones that gets connected directly in your router through an Ethernet port; or Computer-computer communications which replaces the traditional phone with a microphone, speaker and sound card; All three nullify the restrictions surfaced in distance to distance communications.
For simplicity of the analysis and to be in harmonistic with the secondary data collected, I held these three different types of Voice IP to be constant throughout the whole industry. A) Geographic Scope: I defined my market globally because this type of service is more relevant to global business to business transactions (BIB) that now use these more efficient methods of communicating as oppose to the traditional method later discussed. The Voice over Internet Protocol, or Vivo, is relatively new in its intangible product life. North America accounts for nearly 80% of this industry although expansions in Europe amp; Asia are promising.
If the geographic scope was nationalized instead of globalize, then you would see increase in the concentration ratio as well as the HI index due to the amount of accounts in the US, where it was originally adopted. B) Horizontal Integration: An alternative to Vivo is the traditional landlines, which is an analog based device that process signals with variances in amplitude and frequency which has been generally used. Another substitute that one has to consider is the mobile device connection, which is cellular technology based on satellite and radio towers.
C) Vertical Integration A complement to this industry would be companies that produce monitors, microphones, web cameras, and routers that enhance your interaction when using Voice ‘P. All these can be seen as supplements to the interactions in business as well. (E. G. Having a videoconferencing with someone who is across the country. ) Other complements are smartness or other Internet access devices that can support such software. D) Upstream ; Downstream Firms Upstream firms in this industry are manufactures of products needed for installation and/or maintenance for example Modem suppliers.
