Overview of the Telecommunications Industry

A complete analysis of the Telecommunications Industry, including trends, statistics and profiles of the 500 most successful Telecom firms, is available in the Telecommunications Industry Almanac.

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6. Wireless Cities and Municipal Wi-Fi Broadband Systems
   
   
7. Telcos Dive into Wi-Fi
   
   
8. Deregulation Evolves
   
   
9. VoIP Use Soars and Threatens to Revolutionize Telecom
   
   
10. New Technologies Combine Cell Phones with VOIP
    
    
11. Telecom Equipment Makers Gear Up for VOIP While Manufacturers in China Gain Huge Market Share
    
    
12. New Technology Will Give Fiber Optic Network Owners a Break on Costs
    
    
13. TV over IP—Telecom Companies Enter the Television Market
    
    
14. Last Mile Challenges Tumble; Mass Broadband Markets Emerge
    
    
15. Cable Providers Compete Aggressively For Telephone Business
    
    
16. Fiber-to-the-Home Gains Traction
    
    
17. Services Available via Ultra-High-Speed Broadband are Imaginative, Futuristic
    
    
18. The U.S. Remains Far Behind in Broadband Deployment and Access Speeds
    

1. Introduction to the Telecommunications Industry
The telecommunications sector is generally in much better shape to move forward than it was four years ago. To understand the state of the industry today, you should bear in mind that a) telecommunications firms worldwide suffered some of the heaviest blows in the technology stocks collapse of the early 2000s, b) mergers, consolidation and financial restructuring have completely changed the landscape, c) globalization is heating up competition, d) deregulation and privatization will have a continual effect on the telecom sector worldwide, and e) rapid advances in telecom technology will continue unabated.

No other industry touches as many technology-related business sectors as telecommunications, which by definition encompasses not only the traditional areas of local and long-distance telephone services, but also advanced technology-based services including wireless communications, the Internet, fiber optics and satellites. Telecom is also deeply intertwined with cable TV systems, since cable companies are now aggressively offering local exchange service and Internet service. The relationship between the telecom and cable sectors has become even more complex as telcos are now selling TV via IP (Internet protocol) services, competing directly against cable for consumers’ entertainment dollars.

For late 2005 and on through 2006, ingenuity, innovation and a reasonable approach to spending and investment will help to move the industry ahead. New cellular, cable telephony, VOIP (voice over Internet protocol) and wireless technologies promise continuous evolution of this sector. The cost of a cell phone call continues to drop, and cell phone manufacturers are adding advanced new features to their phones on an almost monthly basis. Wi-Fi communication, currently limited to a range of a bit more than one hundred feet, is now planning a future with a range of 30 miles or so via WiMax. Now offered at airports, hotels, coffee shops, bookstores and elsewhere, wireless Internet access is becoming downright ubiquitous in places with high levels of pedestrian traffic.

As more consumers recognize the promise, and good value, of phone service using the Internet, the number of companies offering this service has increased dramatically and millions of households and businesses worldwide are signing up for VOIP service. Several heavy hitters, such as Comcast, AT&T and Qwest, have jumped on the VOIP bandwagon, along with startups like Skype and Vonage. Meanwhile, local phone companies, led by Verizon and SBC, are laying fiber-optic cable directly to the neighborhood and even into the home and office in order to retain customers with promises of ultra-high-speed Internet connections and enhanced entertainment offerings. In the U.S., cellular phone companies are updating their networks to 3G at last, in order to enhance service and bring to Americans the third-generation features that many other countries already enjoy.

Mergers, acquisitions and other industry changes continue to make news. Cingular, a cellular company jointly owned by two Bell companies (SBC and BellSouth), is acquiring AT&T Wireless, a spin-off of AT&T. Meanwhile, AT&T is merging into SBC, and MCI is merging into Verizon. The competitive landscape is shifting dramatically due to these mergers.

In addition, U.S. Government regulations are evolving quickly which will bring even bigger changes to business strategies. Overall, the telecommunications industry is in a state of continuous technological and economic flux.

For a complete analysis and further discussion of statistics, trends and more:
Purchase Plunkett's Telecommunications Industry Almanac or the eBook (PDF) Version by download.