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Wireless Telecommunications Services
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US wireless telecommunications services industry includes about 1,600 companies with combined annual revenue of about $210 billion. Major companies include the four nationwide wireless carriers: AT&T, Verizon, Sprint Nextel, and T-Mobile USA (an indirect subsidiary of Deutsche Telekom). The industry is highly concentrated: the 50 largest companies generate nearly all industry revenue.
Global wireless services revenue is about $1 trillion. Top countries by number of wireless subscriptions include China (747 million), India (525 million), the US (298 million), and Russia (230 million).
The industry includes companies that operate wireless telecommunications networks and related facilities. Companies that resell wireless telecommunications services are not included in the industry.
COMPETITIVE LANDSCAPE
Demand for wireless services is driven by consumer income and innovative service offerings. The profitability of individual companies depends on marketing and customer service. Large companies have advantages in marketing and in delivering a comprehensive array of services nationally. Small companies can compete effectively by delivering economically attractive service packages tailored to niche groups regionally. The industry is capital-intensive: average annual revenue per employee is more than $1 million.
The proliferation of smartphones, including iPhones, BlackBerries, and Androids, has to a large extent driven industry revenue and R&D in recent years.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services provided include voice telephony (ordinary cell phone service); messaging (voice, text, image, and video); Internet access; music and video distribution; and ringtone distribution. While voice telephony traditionally has dominated wireless network traffic, data is expected to...
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