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Wireless Telecommunications Carriers in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Aug 29, 2014, 00:00 ET

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An increasing subscriber base and the proliferation of mobile devices will spur growth

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New York, NY (PRWEB) August 29, 2014 -- Over the past five years, the Wireless Telecommunications Carriers industry benefited from the rapid development of mobile devices, particularly smartphones. The popularity of these devices bolstered growth despite, and partly thanks to, a weak economic environment. Although the purchase of the discretionary device may be postponed, households have opted to disconnect their landlines instead. The portion of households with only wireless telephone connections has increased markedly since 2009, according to data from CTIA, the Wireless Association. As a result, revenue is expected to grow over the five years to 2014.

According to IBISWorld Industry Analyst Sarah Kahn, “During the past five years, the industry has been defined by its transition from primarily providing voice services to focusing on providing data services.”

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 broadband connectivity. Additionally, Softbank's recent acquisition of Sprint, Sprint's subsequent purchase of Clearwire and T-Mobile's acquisition of prepaid carrier MetroPCSindicate that the industry is in the midst of a consolidation phase.

“The acquisition spree is also indicative of the market saturation of mobile devices and the need for companies to siphon consumers from each other to grow further,” says Kahn, as wireless penetration reached 104.3% in 2013.

Over the next five years, Sprint and T-Mobile are anticipated to bolster their competitive positions through acquisitions, expansion of 4G-network coverage and value-added services.

The Wireless Telecommunications Carriers industry exhibits a high level of concentration. In 2014, the top four major players in this industry (AT&T, Verizon, Sprint Nextel and T-Mobile) are expected to account for a large portion of industry revenue. In 2019, industry revenue is projected to increase significantly, driven by growth in the number of subscribers as the population and therefore number of devices requiring mobile data expands. As broadband-enabled smartphones proliferate, more consumers will perceive on-the-go internet access as an essential function of cell phones. These perceptions, further stimulated by apps offering mobile services, are forecast to drive annualized revenue growth over the next five years, slightly slower than in the previous five years. Going forward, the industry's performance will largely depend on how competition unfolds for wireless spectrum, an increasingly rare commodity.

For more information, visit IBISWorld’s Wireless Telecommunications Carriers 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
The Wireless Telecommunications Carriers 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, wireless internet access and wireless video 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.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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