Wired Telecommunications Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide services such as local and long-distance calling, Internet access, and TV program distribution over fixed-line telecommunications networks. Major US companies include AT&T, CenturyLink, Comcast, and Verizon Communications; major international wireline carriers include China Telecom, Deutsche Telekom (Germany), Nippon Telegraph and Telephone (Japan), and Telefónica (Spain).

The global wired telecommunications services industry comprises about 1.2 billion fixed telephone lines and 550 million fixed broadband Internet subscriptions, according to the International Telecommunication Union (ITU). China has the most fixed lines (294 million), followed by the US (151 million), Germany (45 million), and Russia (44 million).

The US wired telecommunications services industry includes about 2,000 companies with combined annual revenue of about $160 billion. The industry is expected to grow at a low rate in the next two years amid competition from wireless telecommunications providers.

Cable TV system operators are discussed in the Telecommunications Services industry profile. A separate profile covers Wireless Telecommunications Services.

COMPETITIVE LANDSCAPE

Demand is driven by new services and growth in business activity. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have economies of scale in providing a highly automated service to large numbers of customers, and the financial resources required to build and maintain a large network. Smaller companies can compete effectively in small markets or by providing specialty services. The industry is highly concentrated: the 50 largest companies generate more than 90 percent of revenue....