Wired Telecommunications Services

Wired Telecommunications Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide services such as local and long-distance calling, internet access, and TV program distribution over fixed-line telecommunications networks. Major US companies include AT&T, Comcast, Spectrum, and Verizon Communications. Major international wireline carriers include BT Group (the UK), China Telecom, Nippon Telegraph and Telephone (Japan), and Orange SA (France).

COMPETITIVE LANDSCAPE

Demand is driven by new services and growth in business activity. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have economies of scale in building and maintaining networks. Smaller companies can compete effectively in small markets or by providing specialty services. The US industry is highly concentrated: the 50 largest companies generate more than 90% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are local and long-distance calling, TV distribution, and internet access services. Residential internet access accounts for about 25% of the industry revenue. Followed by video and audio programming packages (about 20%), all other products and services (about 10%), and business internet access (about 10%). Other services include network access, data transmission, private networks, installation, equipment sales, and calling features such as caller ID and voice mail. Network access charges are levied against other carriers, mainly long-distance and wireless service providers that need access to local wired phone systems.