Telecommunication Companies in US - Essay Example

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The US telecom industry has been noting intense growth and high levels of increase in revenues over the years. This assignment aims at discussing the telecom industry as a whole for the global markets. A focus will also be made on the US telecom industry and the AT&T Company. …
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Telecommunication Companies in US
Overview of Telecommunication Industry:
The US telecom industry has been noting intense growth and high levels of increase in revenues over the years. This assignment aims at discussing the telecom industry as a whole for the global markets. A focus will also be made on the US telecom industry and the AT&T Company. The paper will provide the history of the markets as well as the market share and other aspects of the market presence as well. The telecommunication industry is one of the most profitable ones worldwide. The industry has seen immense changes and as a result the industry is becoming a booming one worldwide. According to the Economy Watch, the world telecommunications markets is expected to see a rise of almost 11% compound annual growth rate by the end of 2010 (Economy Watch, 2010). The industry is built with a number of leading companies, like AT& T, British Telecom, Virgen, Frontier, Xholdings and many more. The next section will deal with the US telecommunication industry and will provide some important statistics that relate to the industry in the United States. Also this will be followed by a focus on the largest telecommunication company in the market, i.e. AT&T.

US Telecommunication Industry:
A report by the TIA highlights that the US telecom Industry has seen an intense growth of almost 7.2% for the period of 2008 – 2011 and the industry us expected to reach as much as $1.3 trillion in 2011. There has been a major acceleration in the growth of the US telecommunication industry and the industry has been studied to grow from 8.3% in 2007 to 9.3% in 2008 (IT Facts. 2008). Gartner researches highlights that the communication industry has spent as much as $347.5 billion in the year 2008 on the IT systems which include the hardware, IT services, software and also the telecommunications. The report also states that the growth rate between 2006 and 2011 has accounted to almost 3.8% and the companies in the industry are trying to improve all the aspects of the company mostly focusing on the process management. The US telecom markets specifically the fixed line service has faced a number of changes and improvements in the recent years and all the major participants in the industry contribute to the market share to a great extent. The major contributors to the United States telecommunication industry include AT&T, Frontier, Level 3, Verizon, Xholdings, and Warwick. A few other statistics of the industry include the growth in the fixed line telecoms which has been seen to grow by almost 1.4% in 2008 and the total volume of the industry has grown to almost 1098.2 million fixed lines. The report by Data monitor also brings out that the market volume forecasts is expected to grow in 2013 to a volume of as high as 1180 million which will be a total increase of 7.4% from 2008 (Datamonitor, 2009). The markets are also segmented into two main sectors, i.e. the voice only transmission which has a higher domination in the global markets and contributes to as much as 61.8% of the total market revenue. The second segment which relates to the Asia Pacific Market contributes 33.7% of the total global fixed line markets.
AT&T Company:
AT &T was formerly recognized as SBC Communications and has been recognized to be one of the largest telecommunication companies in the United States. AT &T deals with a number of different products and services. The company holds the largest revenue across the world and has all its operations across the world under the brand name of AT &T. AT&T has also been the parent of and has a vast customer database. The company has been recognized for its voice services. The table below provides a clear view of the company and its growth over the years.
AT&T Financials
40,733. 0
43,764. 0
63,055. 0
118,928. 0
124,028. 0
Net Income
5,901. 0
6,168. 0
10,288. 0
11,951. 0
12,867. 0
Profit Margin
14. 5 %
14. 1 %
16. 3 %
10. 0 %
10. 4 %
Total Assets
110,265. 0
145,632. 0
270,634. 0
275,644. 0
265,245. 0
Total Liabilities
44,106. 0
52,281. 9
92,286. 2
160,277. 0
168,898. 0
* All numbers in $millions Except Employees and Margins
Source: Data Monitor, 2009

Table: AT&T Inc. Financials (Datamonitor, 2009)

AT&T clearly shows a steady and intense growth and has also shown excellence in the overall performance. The company has shown immense growth and improvements over the years and the accounts for as much as 12.5% of the total global fixed line telecom. The company has spread across and become the market leaders in US, but has also grown to become major players in other markets including major countries. A report by data monitor highlights that the company in 2006, served as many as 35 million consumer lines and almost 23 million business lines along with the four million wholesale lines. On the whole 2006 AT&T served a total of 62 million access lines.


Datamonitor, 2009, ‘Global Fixed Line Telecoms’, November 2009, Accessed on 2nd April 2010, Retrieved from

Economy Watch, 2010, ‘World Telecom Industry’, Accessed on 3rd April 2010, Retrieved from

IT Facts, 2008, ‘US telecom industry to grow at 7.2%’, 22nd February 2008, Accessed on 4th April 2010, Retrieved from

Telecommunications Market Data Tables, 2009, ‘Telecommunications market data tables Q1 2009’, September 2009 Read More
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