Wireless Telecommunications Services Industry Profile

Companies in this industry operate and maintain switching and transmission facilities to provide telecommunications services via the airwaves. Major companies include AT&T, Verizon, Sprint Nextel, and T-Mobile USA (all based in the US), as well as China Mobile, Deutsche Telekom (Germany), Vodafone Group (UK), and France Telecom.

Global wireless services revenue is about $1.2 trillion, according to Insight Research. Top countries by number of wireless subscriptions include China, India, the US, and Russia. Emerging markets in Africa, Eastern Europe, and the Middle East provide opportunities for revenue growth.

The US wireless telecommunications services industry includes about 1,600 companies with combined annual revenue of about $210 billion and is expected to grow at a high rate over the next two years. Key growth drivers include advertising on mobile devices, customer retention, and new technology.

The industry includes companies that operate wireless telecommunications networks and related facilities. Companies that resell wireless telecommunications services are not included in the industry.

COMPETITIVE LANDSCAPE

Demand for wireless services is driven by consumer income and innovative service offerings. The profitability of individual companies depends on marketing and customer service. Large companies have advantages in marketing and in delivering a comprehensive array of services nationally. Small companies can compete effectively by delivering economically attractive service packages tailored to niche groups regionally.The industry is highly concentrated: the 50 largest companies generate nearly all industry revenue.

The proliferation of smartphones, including iPhones and ...