Wired Telecommunications Services Industry Overview

Excerpt from Wired Telecommunications Services Report

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, CenturyLink, Comcast, and Verizon Communications; major international wireline carriers include China Telecom, Deutsche Telekom (Germany), Nippon Telegraph and Telephone (Japan), and Telefónica (Spain).

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 industry is highly concentrated: the 50 largest companies generate more than 90 percent of revenue.

Products, Operations & Technology

Major services are local and long-distance calling, TV distribution, and Internet access services. Local calling and TV program distribution each account for about 20 percent of industry revenue; long-distance calling and Internet access each account for about 10 percent. 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.