Internet Service Providers Industry Profile

Report Page Length: 10-12
Last Quarterly Update: 6/28/2010
SIC Codes: 7374, 7375, 7379
NAICS Codes: 517210, 518111
Chapters Include:
Industry Overview Trends & Challenges Industry Forecast
Quarterly Industry Update Call Prep Questions Website & Media Links
Business Challenges Financial Information Glossary & Acronyms
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Excerpt from Internet Service Providers Industry Profile

The US Internet service provider (ISP) industry includes about 4,000 companies that generate combined annual revenue of about $20 billion. Major companies include AOL, AT&T, Comcast, Microsoft, and Verizon. The industry is highly concentrated: the 50 largest companies generate about 80 percent of revenue; the four largest companies account for more than 50 percent.

The industry includes companies that provide access to the Internet via wired or wireless connections. Internet access operations of telecommunications carriers are included in the industry, but telecommunications companies themselves are covered in separate industry profiles. Internet publishers, broadcasters, and search portals also are covered in a separate industry profile, as are Internet-based retailers.

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, Web site design and hosting, and technical support services. Internet access accounts for about 75 percent of industry revenue. Internet access allows individuals or companies to connect to the Internet over ordinary and special telephone lines, cable, or wireless connections (including satellite). Web site hosting allows users to have an address on the Internet (a Web site) by maintaining files on a specialized computer called a server, while Web site ...

 
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