Wires crossed: The industry struggles to remain relevant against competing technologies

The Wired Telecommunications Carriers industry offers local and long-distance voice services using the public switched telephone network, along with wholesale access to networks for use by other companies to provide voice communication services to customers. Although the Wired Telecommunications Carriers industry was once the principal provider of voice communication services, numerous substitutes have taken its place. Shifts in consumer preferences away from wired telephony to newer technologies are expected to decrease industry revenue over the five years to 2018. Major operators are expected to continue focusing on and expanding services such as high-speed internet at the expense of copper wired service and infrastructure...purchase to read more.

Industry Statistics & Market Size
Revenue
$75bn
Annual Growth 13-18
-4.7%
Forecast Growth 18-23
Profit
Employment
169,482
Businesses
8,123

Industry Threats & Opportunities

  • Wired telecommunications carriers have begun deploying optical fiber networks
  • Businesses and government organizations have been slower to cut the cords to their landlines
  • The Wired Telecommunications Carriers industry is not expected to fare well moving forward
  • Industry Report - Starting a New Business Chapter

    The most significant barrier to entry in the industry is that demand for wired telephone service is declining. More efficient and convenient substitutes like wireless and VoIP are depleting demand for the wired voice telephony. Moreover, the copper-wire technology of the Public Switched Telephone Network (PSTN), while still sufficient for phone calls, is no longer a sufficient transport medium for the high-bandwidth data applications that consumers use today. As operators switch to new technologies for transporting data, they are discarding their traditional wireline voice divisions. As data networks are upgraded and internet reliability continues to improve, the quality gap between VoIP and traditional voice services is disappearing. The...purchase to read more.

    Additional Insights for the Wired Telecommunications Carriers Industry

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

  • Development of a symbiotic relationship with another industry
  • Provision of a related range of goods/services
  • Accessibility to consumers
  • IBISWorld analysts also discuss how external factors such as Number of broadband connections and Number of mobile internet connections in the Wired Telecommunications Carriers industry impact industry performance..

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    What's in this report

    What is the Wired Telecommunications Carriers Industry?

    This industry provides local and long distance voice communication services using the public switched telephone network. Industry operators also generate revenue by providing private network services and by wholesaling access to their networks for voice communication. This industry excludes operators that provide wired internet or video services and those that solely resell telecommunications services (IBISWorld report 51791a).

    Industry Products
  • Local voice services
  • Carrier services
  • Long-distance voice services
  • Subscriber line charges
  • Private network services
  • Internet access services
  • Industry Activities
  • Providing local voice communication services
  • Providing long-distance and international voice communication services
  • Wholesaling network access
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of broadband connections
  • Number of mobile internet connections
  • Per capita disposable income
  • Number of businesses

  • Current Performance
  • Abandoning the wire
  • Businesses slower to change
  • Technology substitution
  • Chart: Revenue Growth

  • Industry Outlook
  • Dismal future
  • Table: Wired Telecommunications Carriers Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • VoIP
  • Telecommunications Resellers
  • Internet Service Providers
  • Consumers

  • Key Selling Industries
  • Telecommunication Networking Equipment Manufacturing
  • Transmission Line Construction

  • Products & Services
  • Internet access services
  • Local voice services
  • Carrier services
  • Private network services
  • Long-distance voice services
  • Subscriber line charges
  • Other
  • Chart: Wired Telecommunications Carriers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential
  • Business, government and nonprofit organizations
  • Chart: Major Market Segmentation for the Wired Telecommunications Carriers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, marketing, rent and utilities
  • Chart: Cost Structure Benchmarking – Sector vs Wired Telecommunications Carriers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wired Telecommunications Carriers Industry

  • Industry Globalization
    AT&T Inc., Verizon Communications Inc., CenturyLink Inc.,
  • Table: AT&T Inc. - financial performance
  • Table: Verizon Communications Inc. - financial performance
  • Table: CenturyLink Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wired Telecommunications Carriers 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 Wired Telecommunications Carriers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of mobile internet connections (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Access Line
  • A wire (or series of wires) that forms a direct connection between a customer and the local telephone exchange.
  • Competitive Local Exchange Carrier (Clec)
  • A telecommunications carrier that competes with the already established incumbent local exchange carriers (ILECs).
  • Core Network
  • The central part of a telecommunications network that encompasses the principal transfer routes of information to and from subnetworks.
  • Incumbent Local Exchange Carrier (Ilec)
  • The original, monopoly local exchange carrier in a given area; ILECs receive different regulatory treatment than the newer CLECs.
  • Integrated Services Digital Network
  • A set of communications standards that allows for the simultaneous transmission of data, voice and video services over the public switched telephone network.
  • Local Access And Transport Area (Lata)
  • A region that differentiates between local and long distance calls. Intra-LATA calls are handled by local exchange carriers, while calls between LATAs are handled by long-distance carriers.
  • Public Switched Telephone Network
  • The network of the world's public circuit-switched telephone networks, consisting of a variety of transmission technologies all interconnected by switching centers.
  • What Our Customers Say

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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 Wired Telecommunications Carriers 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

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