Push-to-Talk Over Cellular (PoC) Providers in the US Industry Market Research Report Now Available from IBISWorld

Share Article

The Push-to-Talk Over Cellular (PoC) Providers industry suffered during the recession, when falling numbers of employees and reduced consumer disposable incomes hampered demand for the service. With the economic recovery and rollout of 4G networks, however, the industry is expected to grow steadily into the next five years. The dissolution of the PoC offering of the current major players will open the field for other companies to expand their market shares. For these reasons, industry research firm IBISWorld has added a report on the Push to Talk Over Cellular (PoC) Providers industry to its growing industry report collection.

Major players' margins have expanded as customers flocked to 4G-capable firms

The Push-to-Talk Over Cellular (PoC) Providers industry is expected to decline at an average rate of 1.2% annually over the five years to 2012. The 2008 and 2009 recession put a significant damper on revenue, as industry revenue fell from $1.1 billion in 2007 to only $939 million in 2009. This drop occurred primarily due to a decreased number of employees in the United States and falling business activity during these years, as business users comprise a large majority of the industry's market. “Consumer demand also fell,” says IBISWorld industry analyst Dale Schmidt, “as contractions in per capita disposable income caused consumers to cut PoC services from their mobile phone plans.” However, the slow economic recovery in recent years has benefitted the industry, and improvements in employment and disposable income are expected to lead to 1.9% growth in industry revenue in 2012 to $1.0 billion.

Over the past ten years, the industry has benefitted greatly from the population's switch from wired phone connections to mobile phone connections. But the rise in popularity and availability of smartphones has had a negative effect on demand due to the existence of smartphone apps that mimic PoC services. The Push-to-Talk Over Cellular (PoC) Providers industry is currently in a state of consolidation as users flock to the major companies who have the resources to invest in infrastructure for 4G networks, the newest standard for wireless communications. In addition, says Schmidt, “Sprint Nextel has announced it will shut down its Nextel network, leaving its 10 million users essentially up for grabs.” Consolidation has increased the industry's average profit margin, but mostly due to the higher standing of the industry's top players, Verizon and AT&T, which generate profit margins well above the industry average.

Over the five years to 2017, the industry is expected to grow steadily. As during the period from 2010 through 2012, this growth will primarily come as a result of growth in the number of employees and per capita disposable income. Also, the switch to 4G networks as the main network standard will boost demand as call connection times are reduced to essentially zero. However, smartphone apps will continue to siphon away demand. For more information, visit IBISWorld’s Push-to-Talk Over Cellular (PoC) Providers in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry includes traditional wireless telecommunications carriers that offer push-to-talk over cellular (PoC) as an add-on service. This industry consists of PoC as an add-on service and excludes land mobile radio (LMR) communications.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website