Telecommunications Resellers Industry Profile

Report Page Length: 10-12
Last Quarterly Update: 1/30/2017
SIC Codes: 4813
NAICS Codes: 517911
Chapters Include:
Industry Overview Trends & Challenges Industry Forecast
Quarterly Industry Update Call Prep Questions Website & Media Links
Business Challenges Financial Information Glossary & Acronyms
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Excerpt from Telecommunications Resellers Industry Profile

Companies in this industry purchase network access and capacity from telecommunications carriers and resell wired and wireless telecommunications services to businesses and households. Major US companies include Cricket Communications (owned by AT&T) and Granite Telecommunications; major companies based outside the US include TracFone (a subsidiary of Mexican wireless carrier América Móvil) and the UK's Virgin Mobile.

Worldwide, the wireless telecommunications reseller market is expected to exceed $73 billion by 2022, according to Radiant Insights. Europe is the largest market for the industry. The Asia/Pacific region, including India and China, represents a major growth opportunity.

The US telecommunications resellers industry includes about 2,400 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $12 billion.

Telecommunications resellers include mobile virtual network operators (MVNOs). The resale of satellite telecommunications is not included in this industry.

COMPETITIVE LANDSCAPE

Demand is driven by consumer spending, growth in business activity, and new technology. The profitability of individual companies depends on efficient operations and good marketing and customer service. Large companies enjoy economies of scale in purchasing telecommunications services to resell. Smaller companies can compete effectively in niche geographic markets. The US industry is concentrated: the top 50 companies account for about 65% of revenue.

Telecommunications resellers compete with wireless service providers and their prepaid affiliates or brands; local and regional carriers; traditional landline service providers; and mobile satellite service providers.

 
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