Industry Analysis of Telecommunications

The telecommunication wireless industry is defined by its ability to operate and maintain switching and transmission facilities to provide direct communication through radio-based cellular networks. Services found in this industry include cellular mobile phone services, paging services, broad and personal communication services, and wireless public safety services. According to (IBIS World database), 52.2 percent of the products and services are segmented in cellular voice services. The telecommunication wireless is a 210.2 billion dollar revenue generating industry, with 43.7 billion in total profits. Over the past five years, this industry has experienced an annual growth rate of 2.6 percent and is forecasted to grow at 4.8 percent during the next five years (IBIS World database). The major players in this industry include the following: Verizon Wireless, AT&T Inc., Sprint Nextel Corporation, and Deutsche Telekom AG (see Appendix ? for graphical breakdown of percentage market share).
During the past five years, this industry has fared well in a weak economic environment. Their economic prosperity has been helped by the increasing demand for wireless mobile device products and services. (Find statistic about households switching from landlines to wireless). In the next five year(s), the industry projects to grow 4.8 percent from the transition of providing voice services to focusing on the delivery of wireless data services.
The Federal Communication Commission (FCC) is the main regulator of industry activities. One of the main controls the FCC holds over the wireless communication carriers is their ability to regulate the amount of spectrum licenses available to the industry.
The two major consumers in the wireless communication market can be segmented into the corporate buyers or the individual consumer. Both sets of buyers tend to be semi-price sensitive. Corporations tend to be semi-price sensitive due to a majority of their products or services not