Wired Telecommunications Services
Description
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, Comcast, Spectrum, and Verizon Communications. Major international wireline carriers include BT Group (the UK), China Telecom, Nippon Telegraph and Telephone (Japan), and Orange SA (France).
The global wired telecommunications carriers market is forecast to about $1.4 trillion in 2030 at a compound annual growth rate (CAGR) of 5.5% for 2024-2030 period, according to Statistics MRC. About 5.6 billion people (about 69% of the world's population) will be using the Internet in 2025, according to DataReportal.
The US wired telecommunications services industry includes about 30,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of more than $320 billion.
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 building and maintaining networks. Smaller companies can compete effectively in small markets or by providing specialty services. The US industry is highly concentrated: the 50 largest companies generate more than 90% of revenue.
Some wired telecommunications services providers also provide wireless telecommunications services. Those that do not may compete with wireless carriers, satellite networks, and internet streaming companies for phone and internet services, as well as TV content distribution. Increasing reliance on wireless services for data and voice communications accounts for a shift away from wired broadband subscriptions - including cable, DSL, and fiber optic connections - to wireless by consumers in many markets.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are local and long-distance calling, TV distribution, and internet access services. Residential internet access accounts for about 20% of the industry revenue. Followed by business internet access (about 15%), residential fixed local telephone (about 10%), all other products and services (about 10%), and private network services (about 10%). Other services include network access, data transmission, private networks, installation, equipment sales, and calling features such as caller ID and voice mail. Network access charges are levied against other carriers, mainly long-distance and wireless service providers that need access to local wired phone systems.
Telephone systems consist of wires, connections, and switches. From a demarc (demarcation) box located at a customer's address, wires are strung on poles or underground to a local facility called a central office. Here, the wires are connected to a main distribution frame (MDF) that in turn is connected to a class 5 switch, which is basically a large computer. The entire collection of equipment and wires leading up to a central office is called the outside plant.
Local central offices are connected with each other in what is called the public switched telephone network (PSTN). Companies may own and operate different pieces of this network, either local connections or regional and national "backbone" systems. The common technical language that allows all switches in the network to communicate with each other is called signaling system 7 (SS7). Companies use customized business and operational support systems (B/OSS) to manage their parts of the network and to supply services.
The global wired telecommunications carriers market is forecast to about $1.4 trillion in 2030 at a compound annual growth rate (CAGR) of 5.5% for 2024-2030 period, according to Statistics MRC. About 5.6 billion people (about 69% of the world's population) will be using the Internet in 2025, according to DataReportal.
The US wired telecommunications services industry includes about 30,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of more than $320 billion.
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 building and maintaining networks. Smaller companies can compete effectively in small markets or by providing specialty services. The US industry is highly concentrated: the 50 largest companies generate more than 90% of revenue.
Some wired telecommunications services providers also provide wireless telecommunications services. Those that do not may compete with wireless carriers, satellite networks, and internet streaming companies for phone and internet services, as well as TV content distribution. Increasing reliance on wireless services for data and voice communications accounts for a shift away from wired broadband subscriptions - including cable, DSL, and fiber optic connections - to wireless by consumers in many markets.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are local and long-distance calling, TV distribution, and internet access services. Residential internet access accounts for about 20% of the industry revenue. Followed by business internet access (about 15%), residential fixed local telephone (about 10%), all other products and services (about 10%), and private network services (about 10%). Other services include network access, data transmission, private networks, installation, equipment sales, and calling features such as caller ID and voice mail. Network access charges are levied against other carriers, mainly long-distance and wireless service providers that need access to local wired phone systems.
Telephone systems consist of wires, connections, and switches. From a demarc (demarcation) box located at a customer's address, wires are strung on poles or underground to a local facility called a central office. Here, the wires are connected to a main distribution frame (MDF) that in turn is connected to a class 5 switch, which is basically a large computer. The entire collection of equipment and wires leading up to a central office is called the outside plant.
Local central offices are connected with each other in what is called the public switched telephone network (PSTN). Companies may own and operate different pieces of this network, either local connections or regional and national "backbone" systems. The common technical language that allows all switches in the network to communicate with each other is called signaling system 7 (SS7). Companies use customized business and operational support systems (B/OSS) to manage their parts of the network and to supply services.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Pricing
Currency Rates
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