Traditional wired services suffer as digital and mobile technologies become more popular
London, United Kingdom (PRWEB) November 15, 2012
Wired Telecommunications Carriers operate, maintain and provide access to facilities for the transmission of voice, data, text, sound and video using a wired telecommunications infrastructure. In 2012-13, industry revenue is forecast to decline by 5.7% to £11.7 billion. This will be consistent with the industry's performance over the past five years, with revenue expected to decline at an annualised 6.6% a year. According to IBISWorld industry analyst Andrew Johnson, “the poor performance has been driven by the improved quality and variety of substitute products and changing preferences for communications in both the consumer and business markets”.
Carriers have been affected by the changing ways in which people communicate, with a preference towards mobile and digital technologies at the expense of traditional wired telecommunications services. In addition to increased substitution threats, technological innovation has facilitated the introduction of new substitute services that are absorbing existing revenue streams of wired telecommunication companies (telcos). The growth of fixed-line broadband has helped support the operators of the fixed-line network, but communication options, such as VoIP, that operate using internet platforms, increased choice and competition in the telecommunications market, negatively affecting demand and prices. Industry operators have fared reasonably well with declining revenue by bundling traditional services with growing ones to enhance revenue across different related industries.
The industry's decline will continue over the next five years to 2017-18, as voice services migrate across to internet protocol. Johnson adds, “the decline in the major revenue stream means that major telcos will have to change their traditional business models to accommodate the growing demand for data services and compete with the speeds offered by 4G mobile networks”.
The Wired Telecommunications Carriers industry has a high level of market share concentration with the top four industry participants accounting for about 81% of industry revenue in 2012-13. The industry is highly concentrated despite the significant increase in competition that has occurred since 1984 as a result of regulatory changes. Major companies include BT Group, Virgin Media and Cable and Wireless Worldwide.
For more information on the Wired Telecommunications Carriers industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Industry participants operate, maintain and provide access to facilities for the transmission of voice, data, text, sound and video using a wired telecommunications infrastructure. The industry also includes participants that purchase access and network capacity from infrastructure owners.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.