Better signal: Revenue will grow as price-sensitive consumers look to resellers for inexpensive options

The Telecommunications Resellers industry experienced strong growth over the five years to 2017, led by a shift away from fixed services, such as landline phones, toward mobile phones with internet capabilities. In addition, changing price structures by upstream wireless telecommunications network operators significantly reduced barriers for selling mobile data plans. However, as the industry matured and subscriber growth slowed for upstream wireless telecommunications network operators, mobile service resellers have increasingly competed with upstream network operators for niche customers...purchase to read more.

Industry Statistics & Market Size
Revenue
$23bn
Annual Growth 12-17
7.8%
Forecast Growth 17-22
Profit
Employment
37,295
Businesses
3,737
Market Share of Companies

Industry Threats & Opportunities

  • Mobile service resellers have been increasingly competing with upstream network operators for niche customers
  • MVNOs must rely on more than low-priced services to effectively compete
  • Spurred by rising profit, the number of industry enterprises is estimated to increase
  • Industry Report - Industry Key Buyers Chapter

    The Telecommunications Resellers industry has a medium level of concentration, with the top three largest companies accounting for about 40.0% of industry revenue in 2017. Major player America Movil SAB de CV controls nearly one-third of the market while the next-largest player, Consumer Cellular Inc., has 4.6% of the industry. Over the five-year period, market share concentration has been on the rise due to companies exiting the industry as they are acquired by larger network operators. For example, Cricket Wireless was acquired by AT&T in 2013, which caused Cricket to exit the industry. Additionally, larger industry operators like America Movil have been purchasing smaller operators...purchase to read more.

    Additional Insights for the Telecommunications Resellers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Telecommunications Resellers Industry are

  • Aggressive marketing/franchising
  • Symbiotic relationship with another industry
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Demand from wireless telecommunications carriers and Number of mobile internet connections in the Telecommunications Resellers industry impact industry performance..

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    What's in this report

    What is the Telecommunications Resellers Industry?

    Companies in this industry purchase access and network capacity from operators of telecommunications networks and resell these services to businesses and households. Although operators that resell wired telecommunications services are included in the industry, companies that resell wireless services (mobile virtual network operators) account for the bulk of industry revenue. This industry does not include the resale of satellite telecommunications.

    Industry Products
  • Mobile telephony
  • Internet and internet telephony services
  • Fixed local and long distance services
  • Carrier and internet backbone
  • Resale of merchandise
  • Industry Activities
  • Purchasing access and network capacity from owners and operators of telecommunications networks
  • Reselling wired and wireless telecommunications services to businesses and households
  • Reselling internet access services via client-supplied telecommunications connections
  • Selling prepaid calling cards and prepaid wireless phones
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from wireless telecommunications carriers
  • Number of mobile internet connections
  • Per capita disposable income
  • Price of semiconductor and electronic components

  • Current Performance
  • Tension builds and competition rises
  • Differentiation is key to success
  • Niche customer segments allows for value-added services
  • Chart: Revenue Growth

  • Industry Outlook
  • Heightened competition expected to continue
  • Profit rises
  • Differentiation through customer service
  • Niche customer segments as strong suit
  • Table: Telecommunications Resellers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Telecommunications Resellers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wireless Telecommunications Carriers
  • Wired Telecommunications Carriers
  • Consumers

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Telecommunication Networking Equipment Manufacturing
  • Wired Telecommunications Carriers
  • Wireless Telecommunications Carriers

  • Products & Services
  • Mobile telephony
  • Fixed local and long distance services
  • Other
  • Carrier and internet backbone
  • Resale of merchandise
  • Internet and internet telephony services
  • Chart: Telecommunications Resellers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Business
  • Consumer
  • Public
  • Chart: Major Market Segmentation for the Telecommunications Resellers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilities and marketing costsAdditional expenses
  • Chart: Cost Structure Benchmarking – Sector vs Telecommunications Resellers

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Telecommunications Resellers Industry

  • Industry Globalization
    America Movil SAB de CV,
  • Table: America Movil SAB de CV - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Telecommunications Resellers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Telecommunications Resellers Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of mobile internet connections (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Mobile Virtual Network Enabler (Mvne)
  • A company that provides infrastructure and services such as billing, administration and network provisioning to MVNOs.
  • Mobile Virtual Network Operator (Mvno)
  • A company that provides mobile phone services but does not have its own licensed spectrum. Instead, these companies purchase network capacity at wholesale rates from network operators.
  • Network Operator
  • A telecommunications company that uses its own infrastructure to provide services. Network operators wholesale network access to resellers.
  • Switched Reseller
  • A reseller that also uses its own switching hardware and its own lines to deliver telecommunications services. Switched resellers are not included in the industry.
  • Switchless Reseller
  • A reseller that does not use any of its own lines or switching equipment in delivering telecommunications services.
  • Voice Over Internet Protocol (Voip)
  • A type of technology that converts voice signals into digital data and transmits it using the internet.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Telecommunications Resellers can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Telecommunications Resellers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Telecommunications Resellers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Telecommunications Resellers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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