Wireless Telecommunications Carriers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 5,400 wireless telecommunications carriers develop, manage, operate, and maintain switching and transmission facilities that provide communications through the airwaves. Wireless telecommunication is the transmission of voice and data through electromagnetic signals that enable users to communicate through various devices, such as cellular phones. Major service categories include wireless voice, wireless data, wireline (landline), broadband, media, and security. Firms may also sell communications devices, like smartphones and tablets.
Ongoing Capital Intensity
Wireless communication is capital-intensive and requires a significant investment in spectrum and network infrastructure.
High Industry Concentration
The US wireless telecommunications industry is virtually an oligopoly that is dominated by a handful of large companies.
Industry size & Structure
The average wireless telecommunications carrier employs about 16 workers and generates over $57 million annually.
- The wireless telecommunications carrier industry consists of about 5,400 firms that employ 86,000 workers and generates over $309 billion annually.
- The industry is highly concentrated; the top 50 companies account for over 95% of industry revenue.
- AT&T, Verizon, T-Mobile, and Sprint are the top wireless carriers in the US. National carriers support international wireless communications services, primarily through agreements with foreign carriers. Operations outside of the US are limited.
Industry Forecast
Wireless Telecommunications Carriers Industry Growth
Recent Developments
Jul 12, 2024 - Employment Decreases
- Wireless telecommunications carrier industry employment decreased slightly during the first five months of 2024, according to the US Bureau of Labor Statistics (BLS). Wireless telecommunications carriers kept their prices unchanged during the first five months of 2024, according to the BLS. Wireless telecommunications carrier sales are forecast to grow at a 2.56% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
- Wireless-only is by far the dominant telecommunications service in US households, according to the US Census Bureau. About 47.7% of US adults lived in a wireless-only household and 43.7% in a household with both landline and wireless service in 2015. By 2022, the share of adults living in wireless-only households had jumped to 72.6% while the share in households with both landline and wireless had dipped to 25.4%. The share of adults living in landline-only households dropped from 5.8% in 2015 to 1.3% in 2022.
- Nearly 40% of US telecom companies getting federal support to remove equipment made by Chinese telecoms firms Huawei and ZTE need additional government funding, according to the Federal Communications Commission (FCC). Removing the equipment from American wireless networks to address security risks is estimated to cost $4.98 billion but Congress has only approved $1.9 billion for the "rip and replace" program. The Bident administration sought another $3.1 billion in October 2023 to further fund removal of equipment made by Chinese telecoms giants but Congress has not acted.
- Decreasing smartphone sales have wireless telecommunications carriers turning to price increases and premium service plans to boost profits, according to The Wall Street Journal. AT&T, T-Mobile US, and Verizon Communications made more money from providing wireless services in Q3 2023 compared with the same period in 2022 as they added phone lines and nudged many clients toward more expensive plans. “Customers are holding on to their phones longer,” said Tony Skiadas, finance chief for Verizon, the country’s largest wireless carrier by subscribers. “I don’t think that’s going to change.”
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