New wireless technologies will enhance the appeal of industry services, driving up demand
Los Angeles, CA (PRWEB) September 26, 2012
The Wireless Telecommunications Carriers industry has benefited greatly from the rapid development of mobile devices over the past five years. The popularity of these devices bolstered growth over the past five years despite a weak economic environment. Based on data from CTIA, the Wireless Association, the portion of households with only wireless telephone connections has increased markedly since 2007. “When forced to choose,” says IBISWorld industry analyst Kevin Boyland, “customers overwhelmingly chose wireless telephone service over landlines.” As a result, revenue has grown to $210.2 billion in 2012, averaging 2.6% growth per year on average over the past five years. In 2012, revenue is expected to grow 3.6%.
The industry's transition from primarily providing voice services to additionally providing data services has defined the past five years. Technological change – namely, the transition to fourth-generation (4G) wireless data services, and the Long Term Evolution (LTE) standard – will further transform this industry into one that primarily delivers data, with traditional voice services being abandoned or retained only to capture intransigent consumers. AT&T's failed attempt to acquire T-Mobile in 2011 signifies that consolidation has likely peaked for the industry. “Future cost-cutting efforts are expected to focus on relocating some industry operations offshore,” says Boyland. Customer service and sales representatives, who constitute a significant portion of this industry's workforce, will bear the brunt of future offshoring. However, Wireless Telecommunications Carriers industry employment is still forecast to increase over the five years to 2017. This growth is due to the large construction and maintenance force the industry will have to employ as it rolls out next-generation network infrastructure.
Industry revenue is expected to rise over the next five years, driven by growth in the number of potential subscribers as the population and number of devices requiring mobile data expand. As more phones require data connections, more consumers will perceive on-the-go internet access as an essential function of cell phones. Going forward, a crucial issue will be how the competition unfolds for limited wireless spectrum, which is regulated by the government. For more information, visit IBISWorld’s Wireless Telecommunications Carriers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry operates and maintains switching and transmission facilities to provide direct communication through radio-based cellular networks. Industry services include cellular mobile phone services, paging services, broadband personal communication services and wireless public safety services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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