London, United Kingdom (PRWEB) June 19, 2012
The Wired Telecommunications Carriers industry is suffering from a change in consumer communication preferences. The need to communicate remains an integral part of the everyday lives of households, businesses and government offices. However, the ways in which people communicate are changing, with a preference towards mobile and digital technologies at the expense of traditional wired telecommunications services. According to IBISWorld industry analyst Craig Shulman, “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)”. Voice over internet protocol (VoIP) is superseding traditional wired voice, and naked DSL allows internet subscribers to avoid fixed access line rental fees.
In 2012-13, industry revenue is forecast to decline by 8.5% to £20.8 billion. This will be consistent with the industry's performance over the past five years, with revenue expected to decline at an annualised 8.2%. The collapse in industry revenue has placed greater pressure on profit margins, which has resulted in a large increase in consolidation in the industry. The number of enterprises operating in the industry is expected to fall at an annualised 9.8% over the five years through 2012-13. The industry's decline will continue over the next five years, as all voice services will eventually migrate across to internet protocol. Shulman adds, “the decline in the major revenue stream means that major telcos will have to change their traditional business models if they wish to avoid becoming dumb pipe providers”.
The Wired Telecommunications Carriers industry has a high level of market share concentration with the top four industry participants accounting for more than 70% of industry revenue in 2012-13. Major companies include BT, Virgin Media, TalkTalk and Cable and Wireless.
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 and provide wired telecommunications services to businesses and households using this capacity.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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