Bundle up: As internet use continues to rise exponentially, increased demand for internet services will drive revenue

Over the past several years, the internet has rapidly developed a universal presence, which has significantly benefited the Internet Service Providers industry in the United States. Current regulatory overhaul is expected to drive government-subsidized network expansion and increase the number of US broadband connections, further driving industry revenue growth. A push toward broadband expansion in rural markets, as well as a rise in demand from the business segment, will boost industry revenue. In recent years, consumers have progressively viewed the internet as a necessity rather than a luxury, a perception that is set to become more widespread over the five years to 2022...read more.

Industry Statistics & Market Size
Revenue
$104bn
Annual Growth 12-17
4.8%
Forecast Growth 17-22
Profit
Employment
223,850
Businesses
11,767
What Our Customers Say

Industry Threats & Opportunities

  • As internet traffic continues to rise exponentially, internet service providers will exercise more control over their networks
  • The FCC has the ability to propose and enforce rapid broadband development in rural areas
  • Widespread internet accessibility continues to pose a unique challenge to the industry
  • Industry Report - Industry Products Chapter

    In broad terms, the Industry Service Providers industry offers only one service: internet access. However, the industry has a plethora of methods for delivering that service. While each internet connection type has its respective speed, connection method, advantages and disadvantages (see Technology & Systems section of this report), it is mostly useful to define the industry according to residential, business and carrier/backbone services. Backbone providers act as intermediaries between internet service providers (ISPs), website servers and online content providers and only include carrier, transit, peer-to-peer and content delivery services provided to other ISPs (ISP-to-ISP). That segment is expected to account for 22.0% of industry revenue in 2017. The remaining 78.0% o...purchase to read more.

    Additional Insights for the Internet Service Providers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Internet Service Providers Industry are

  • Effective product promotion
  • Ability to quickly adopt new technology
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Internet traffic volume and Percentage of services conducted online in the Internet Service Providers industry impact industry performance..

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    What is the Internet Service Providers Industry?

    Internet service providers (ISPs) use wired infrastructure to provide clients with internet access and related services such as web hosting, web page designing and hardware or software consulting related to internet connectivity. Operators (except telecommunications carriers) may also lease out capacity on their networks to support the network infrastructure of other companies (i.e. backbone services). This industry excludes wireless internet and VoIP services.

    Industry Products
  • Carrier and internet backbone services
  • Dial-up internet access
  • Residential broadband services
  • Business broadband services
  • Industry Activities
  • Providing wired broadband internet access
  • Providing wired narrowband internet access
  • Providing internet backbone and carrier services
  • Hardware and software consulting
  • Web hosting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Internet traffic volume
  • Percentage of services conducted online
  • Number of broadband connections
  • Number of mobile internet connections
  • Private investment in computers and software

  • Current Performance
  • Business market heated up
  • The United States expands internet access
  • Managing bandwidth usage and net neutrality
  • Chart: Revenue Growth

  • Industry Outlook
  • Broadband expansion
  • Go big or go niche
  • Bandwidth crunch
  • Continued investments in infrastructure
  • Table: Internet Service Providers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Internet Service Providers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • VoIP
  • Advertising Agencies
  • Internet Publishing and Broadcasting
  • Search Engines
  • Consumers

  • Key Selling Industries
  • Cable, Internet & Telephone Providers
  • Telecommunication Networking Equipment Manufacturing
  • Transmission Line Construction
  • Wired Telecommunications Carriers

  • Products & Services
  • Residential broadband services
  • Business broadband services
  • Carrier and internet backbone services
  • Other
  • Dial-up internet access
  • Chart: Internet Service Providers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential
  • Other (research, academic, government)
  • Medium and large enterprises
  • Small businesses
  • Chart: Major Market Segmentation for the Internet Service Providers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Operating profit
  • Wages
  • Depreciation
  • Purchases, rent and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Internet Service Providers

  • Basis of Competition
    Service availabilityPriceCustomer serviceSpeed
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Internet Service Providers Industry

  • Industry Globalization
    AT&T Inc.Verizon Communications Inc.Comcast CorporationTime Warner Cable Inc.CenturyLink Inc.
  • Table: AT&T Inc. - financial performance
  • Table: Verizon Communications Inc. - financial performance
  • Table: Comcast Corporation - financial performance
  • Table: Time Warner Cable Inc. - financial performance
  • Table: CenturyLink Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Internet Service Providers 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 Internet Service Providers 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 broadband connections (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Bit
  • A bit (b) is the smallest unit of information that can be stored or manipulated on a computer and is represented by a 1 or a 0. Eight bits make up a byte (B).
  • Broadband
  • An internet connection with a minimum speed of 5 Mbps for downloads and three Mbps for uploads.
  • Bundling
  • A marketing strategy that involves offering several products for sale as one combined product.
  • Docsis
  • An international telecommunications standard that permits the addition of high-speed data transfer to an existing cable TV (CATV) system.
  • Exabyte
  • A large unit of digital information, two to the sixtieth power bytes.
  • Internet Backbone
  • The principal data routes between large networks and core routers in the internet.
  • Megabits Per Second (Mbps)
  • A unit of data transfer representing one million bits per second.
  • Narrowband
  • Legacy internet access technology. More generally, any connection with speeds under 5 Mbps for downloads and three Mbps for uploads.
  • Why buy this report?

    The Internet Service Providers industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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 Internet Service Providers:
    • 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 Internet Service Providers 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 Internet Service Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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