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Telecommunications Equipment Manufacturers The US telecommunications industry comprises about 2,000 companies with combined annual revenue of $65 billion. Major US companies include Cisco, Lucent, 3Com, and Motorola. Large foreign competitors in the US market include Nortel, Nokia, NEC, Alcatel, and Siemens. The industry is highly concentrated: the 50 largest companies hold 75 percent of the market.
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 in a large plant varies from $500,000 to $1 million.
The US telecommunications 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.
The industry is recovering from a major boom and bust that saw revenue fall 50 percent between 2000 and 2002, after climbing 40 percent in previous years.
PRODUCTS, OPERATIONS & TECHNOLOGY
The industry produces transmitters and receivers (including satellites); signal boosters; signal processors; connecting devices; power supplies; switches; and ...
Published By: First Research, Inc.
Date Published: May 2008 * * * * * * Worldwide Videotex Update - May 2008 WORLDWIDE VIDEOTEX UPDATE reports news and information on videotex, The Internet, online services, electronic mail, satellite communications and television related technologies, such as teleconferencing and teletext.
Published By: Worldwide Videotex
Date Published: May 2008 * * * * * *
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