Telecommunications Resellers

Telecommunications Resellers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry purchase network access and capacity from telecommunications carriers and resell wired and wireless telecommunications services to businesses and households. Most major carriers provide network access to resellers on a wholesale basis and also own reseller brands. Major companies include DISH's Boost Mobile, AT&T's Cricket Wireless, T-Mobile's Metro, and América Móvil's Tracfone Wireless (all based in the US), along with CITIC Telecom International (Hong Kong) and Truphone and Lycamobile (both based in the UK).

COMPETITIVE LANDSCAPE

Demand is driven by consumer spending, growth in business activity, and new technology. The profitability of individual companies depends on efficient operations and good marketing and customer service. Large companies enjoy economies of scale in purchasing telecommunications services to resell. Smaller companies can compete effectively in niche geographic markets. The US industry is highly concentrated: the top 50 companies account for about 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Telecommunications resellers offer services at lower prices and with more flexible plans than traditional carriers because they obtain bulk access to networks at wholesale rates and set retail prices independently. Major services include wireless voice telephone services and residential wireless voice telephone services which account for about 30% each. Other services include wireless data services (20%) and residential wireless data (20%).