Telecommunications Services
Competitive Landscape
Demand is driven by technological innovation and by growth in business activity and consumer spending. The profitability of individual companies depends on efficient operations and good marketing. Large companies have big economies of scale in providing a highly automated service to large numbers of customers, and have the financial resources required to build and maintain large networks. Smaller companies can compete effectively in small markets or by providing specialty services. The industry is capital-intensive: average revenue per employee is about $550,000.
Opportunities
Fiber-Optic Connection to Homes - Although most non-local telephone transmission runs over high-speed fiber-optic lines, a large majority of the "last-mile" connection to customers still consists of copper wires, as...
Business Challenges
Industry Depends Highly on Regulatory Decisions - The FCC regulates the interstate activities of telecom providers, including pricing and operations, while state public utility commissions (PUCs) regulate similar matters at the state...