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Internet Service Providers Report Summary

SIC Codes: 4813
NAICS Codes: 517110

Chapters Include

  • Industry Overview
  • Quarterly Industry Update
  • Business Challenges
  • Trends and Opportunities
  • Call Preparation Questions
  • Financial Information
  • Industry Forecast
  • Website and Media Links
  • Glossary of Acronyms
 

Internet Service Providers Industry Overview

Excerpt from Internet Service Providers Report

The US Internet service provider (ISP) industry generates combined annual revenue of about $50 billion. Major companies include AOL, AT&T, Comcast, and Verizon. Operators of wired telecommunications services are the primary providers of Internet access in the US.

Competitive Landscape

Demand is driven by consumer and business requirements for information. The profitability of individual companies depends on efficient operations and good marketing. Big ISPs have economies of scale in operations, purchasing, and marketing. Small companies can compete successfully by operating in underserved markets or excelling in customer service.

Products, Operations & Technology

Major products are Internet access, website design and hosting, and technical support services. Wired telecommunications carriers account for about 80 percent of industry revenue. Other providers include wireless and satellite telecommunications carriers, as well as companies that use telecommunications infrastructure owned by others. Internet access allows individuals or companies to connect to the Internet over ordinary and special telephone lines, cable, or wireless connections (including satellite). Website hosting allows users to have an address on the Internet (a website) by maintaining files on a specialized computer called a server, while website design and technical services involve designing and constructing websites and consulting on various communications and operations issues.

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