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. Most major carriers provide network access to resellers on a wholesale basis and also own reseller brands. Major companies include DISH's Boost Mobile, AT&T's Cricket Wireless, T-Mobile's Metro, and América Móvil's Tracfone Wireless (all based in the US), along with CITIC Telecom International (Hong Kong) and Truphone and Lycamobile (both based in the UK).

Worldwide, the wireless telecommunications reseller market is expected to grow to about $432 billion in 2028 at a compound annual growth rate (CAGR) of 6.1%, according to The Business Research Company. Western Europe is the largest market for the industry, followed by Asia Pacific.

The US telecommunications resellers industry includes about 2,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $20 billion.

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 highly concentrated: the top 50 companies account for about 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Telecommunications resellers offer services at lower prices and with more flexible plans than traditional carriers because they obtain bulk access to ...