Wireless Telecommunications Carriers in the US Industry Market Research Report from IBISWorld has Been Updated

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Consumers are becoming increasingly dependent on cell phones for voice and messaging services, leading to a surge in demand for wireless telecommunications carriers. For these reasons, industry research firm IBISWorld has updated a report on the Wireless Telecommunications Carriers industry in its growing industry report collection.

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New wireless technologies will enhance the appeal of industry services, driving up demand

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. The portion of households with only wireless telephone connections has increased markedly since 2007, according to data from CTIA, the Wireless Association. When given the choice, 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 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,” says IBISWorld industry analyst Kevin Boyland. “Technological change, namely the transition to fourth-generation wireless data services and the Long Term Evolution standard, will further transform this industry into one that primarily delivers broadband connectivity.”

Japanese wireless carrier Softbank's recent acquisition of Sprint, Sprint's subsequent bid to purchase Clearwire, and T-Mobile's acquisition of prepaid carrier MetroPCS indicate that the industry is headed toward a long-expected consolidation phase. Mergers and acquisitions have become popular because increasing market penetration has made customer acquisition more expensive than when the Wireless Telecommunications Carriers industry was in its strong early growth phase. “As the industry approaches maturity, operators are now scrambling to build their subscriber base” adds Boyland. “A large subscriber base is critical to competitiveness, as it delivers considerable scale economies and thereby enables a carrier to offer cheaper prices and realize higher margins.” Over the next five years, Sprint and T-Mobile are anticipated to try to bolster their competitive positions with respect to major players AT&T and Verizon Wireless through acquisitions and rapidly expanding their 4G network coverage. Despite consolidation, industry employment is forecast to increase through 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.

In the next five years, industry revenue will be driven by growth in the number of potential subscribers as the population and number of devices requiring mobile data expand. As more broadband-enabled smartphones proliferate, more consumers will perceive on-the-go internet access as an essential function of cell phones. These perceptions will benefit the industry and drive revenue growth that is slightly faster than in the previous five years. Going forward, a crucial issue will be how the competition unfolds for wireless spectrum, which is an increasingly rare commodity. 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.

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.

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