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Essay / Research Paper Abstract
A 4 page paper that begins by identifying the tiers in the cellular industry and explaining the two types of carriers, facilities-based and resellers. Data regarding number of carriers, number of subscribers in the U.S., market share leaders, and the dramatic continual growth in the cellular industry are reported. An analysis of the industry is performed using Porter's five-forces model. The writer concludes with comments as to whether to enter this industry or not. Statistical data included. Bibliography lists 6 sources.
Page Count:
4 pages (~225 words per page)
File: MM12_PGcell2.rtf
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Unformatted sample text from the term paper:
providers, such as Cingular, Sprint, and Verizon (Duke University, 2003). Before the service providers come the towering service providers, which allow cell phones to have service in the first place
(Duke University, 2003). There are five major players in this arena in the world (Duke University, 2003). In terms of service, there are both facilities-based carriers which are those
companies that have large facilities and which provide the actual transmission service, and resellers which are companies who provide services by contracting with the facilities-based carriers. The primary industry is
SIC code 4813, Telecommunications with subheadings of data services and wireless communication services (Hoovers, 2003). There are more than 175 wireless carriers in the U.S., six of which are national
and the rest being local or regional (Lenard and Mast, 2003). As of the end of 2002, there were 140 million wireless customers in the U.S. (Lenard and Mast, 2003).
The wireless market of the telecom industry continues to be the fastest growing with 66 percent of American households owning at least one wireless phone (TNS Telecoms, 2003). That figure
reflected a remarkable increase from 24 percent density in 1998 (Hawn, 1999). Wireless spending increased by nine percent in the second quarter of 2003 while wired telecom service declined by
four percent (TNS Telecoms, 2003). In 2001, wireless customers exceeded residential wired customers for the first time and that gap continues to become greater (Lenard and Mast, 2003).
The industry is allegedly a mature one but it continues to be one that is faced with pressure and challenges in terms of regulations (Lenard and Mast, 2003). Specifically,
regulatory mandates and taxation are the most significant threats to profit (Lenard and Mast, 2003). About 25 percent of all cell phone users change their service carriers each year (Hawn,
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