Digital Disruption

The disruptive march of Internet in Jordan just keeps gathering pace, with new figures released by the Telecommunications Regulatory Commission (TRC) starkly illustrating canada goose Expedition Parka just how quickly new digital forms of communication are laying waste to established business models.

The TRC said the amount of letters and packages handled by public and private postal companies plummeted 23 percent over 2013 compared to the previous year. The biggest blow was dealt to private operators, which saw the total number of items shipped almost halved from 6.4 million to 3.5 million shipments. The public sector saw a smaller drop from 12.3 million to 11 million items.

The rapid growth of Internet connectivity is naturally to blame for this deep plunge, as people are quickly embracing e-mail services, social networks, and mobile messaging canada goose Expediton Parka apps, which are rendering written letters obsolete. Unless the postal sector acts fast and adapts, this plummet in demand for the postal service may spell disaster for the entire sector and the thousands of employees under its wing.

The US Postal Service’s broken business model failed to adapt to a growing technological revolution, forcing it downsize to cut down on costs. After finally acknowledging that its first-class mail volume is unlikely to return to previous levels, the United States Postal Service started focusing on its package business, which continues to grow. It’s still suffering, however, and in 2013 recorded a net loss of $5 billion. With the inevitable rise of e-commerce and a need for more efficient and affordable delivery systems, both in Jordan and the region, perhaps the Jordanian postal sector will secure a better future if it switches gears to improve its package delivery services instead.

The TRC also revealed that the number of landlines in Jordan dropped by 4 percent to just below 380,000 between the first quarters of 2013 and 2014, as Jordanians continued to shift away from fixed line broadband and telephony. In contrast, the number of cheaper and more flexible 3G mobile broadband subscriptions jumped 44 percent to 1.2 million over 2013. This will make fairly glum reading for Orange, which has long used its sole control of Jordan’s fixed-line network as a competitive advantage in a closely fought sector.