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Telecommunication Services In the US, about 11,000 companies provide telecommunication services, with total annual revenue over $500 billion. Large companies include AT&T, Verizon Communications, and Comcast. The industry includes 3,000 wireline carriers (annual revenues about $185 billion); 3,000 wireless companies ($185 billion); 1,400 cable companies ($100 billion); and satellite companies and telecommunication resellers. The industry is highly concentrated: the 50 largest companies hold nearly 90 percent of the market.
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 markets or by providing specialty services. Due to a large degree of automation, average revenue per employee is a high at about $500,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
The industry provides mainly telephone, TV distribution, and data transmission services (such as the Internet). Companies provide service through networks of wires, computers, transmitters, and receivers. In the voice and data segments, companies merely provide a channel over which customers transmit their own information. In the TV distribution segment, companies also supply the content transmitted to the customer.
The operations of telecom service providers revolve around building, maintaining, and operating networks to reach customers. Networks can ...
Published By: First Research, Inc. Date Published: Nov 2009 * * * * * * Telecommunications Equipment Manufacturers The US telecommunications equipment manufacturing industry includes about 1,500 companies with combined annual revenue of $65 billion. Major companies include 3Com, Cisco Systems, and Motorola, as well as the US operations of foreign companies such as Alcatel-Lucent, Nokia, NEC, and Siemens. The industry is highly concentrated: the 50 largest companies generate about 75 percent of revenue.
COMPETITIVE LANDSCAPE
The industry depends on purchases from businesses, telephone companies, cable companies, data communications providers, and TV and radio broadcasters. Profitability for individual companies is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee averages more than $500,000.
The US telecom industry is entering a transition phase where the current telephone system is converted to VoIP technology and the TV broadcast industry is migrating to HDTV technology. These changeovers will require replacing a substantial portion of the equipment in use today, presenting an opportunity for all vendors.
PRODUCTS, OPERATIONS & TECHNOLOGY
The industry produces transmitters and receivers (including satellites); signal boosters; signal processors; connecting devices; power supplies; switches; and phones. About two-thirds of industry revenue comes from equipment for wireless communications (including radio and TV) and a third from equipment for line-based communications.
The industry makes a large ...
Published By: First Research, Inc. Date Published: Nov 2009 * * * * * *
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