Telecommunications Services

Telecommunications Services - Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide wireless and wireline telephone and data services; cable and satellite television distribution services; and Internet access. Major companies include the US-based AT&T, Verizon Communications, and Comcast, as well as Japan's Nippon Telegraph and Telephone Corporation, Spanish firm Telefónica, and China Mobile.

Worldwide, the telecommunications industry generates about $2 trillion in revenue and is projected to earn $2.7 trillion by 2017, according to Insight Research. The European Union, the US, Kuwait, and Canada lead the world in exports of telecommunications services, according to the World Trade Organization.

The US telecommunications services industry includes about 11,000 companies with combined annual revenue of about $530 billion, and is expected to grow at a high rate in the next two years. Key growth drivers include improving bandwidth through high-speed fiber-optic lines, and the development of advanced wireless technology.

Wireline and wireless carriers, which are included in the industry, are further discussed in separate industry profiles. The industry also includes cable TV system operators. Cable TV networks are covered in a separate industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by technological innovation and by growth in business activity and consumer spending. The profitability of individual companies depends on efficient operations and good marketing. Large companies have big economies of scale in providing a highly automated service to large numbers of customers, and have the financial resources required to build and maintain large networks. Smaller companies can compete effectively in small...