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Home > Communications > Telecommunications > General Telecom
Telecommunication Services
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In the US, about 11,000 companies provide telecommunications services, with total annual revenue over $400 billion. Large companies include AT&T, Verizon, and Comcast. The industry includes 3,000 wireline carriers (annual revenues about $240 billion); 3,000 wireless companies ($100 billion); 2,000 cable companies ($60 billion); and satellite companies and telecommunications resellers. The industry is highly concentrated: the 50 largest companies hold 90 percent of the market.
COMPETITIVE LANDSCAPE
Demand is driven by technological innovation and by growth in business activity. 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 a large network. Smaller companies can compete effectively only in small markets or by providing specialty services. Because of the large degree of automation, average revenue per employee is a high $300,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
The industry provides mainly telephone, TV distribution, and data transmission services (such as the Internet). Companies provide these services 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 telecommunications service providers revolve around building, maintaining, and operating networks to reach customers. Networks can be built by ...
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