The telecommunications industry within the sector of

information and communication technology Information and communications technology (ICT) is an extensional term for information technology (IT) that stresses the role of unified communications and the integration of telecommunications (telephone lines and wireless signals) and computer ...

comprises all

telecommunication Telecommunication, often used in its plural form or abbreviated as telecom, is the transmission of information over a distance using electronic means, typically through cables, radio waves, or other communication technologies. These means of ...

/ telephone companies and

Internet service provider An Internet service provider (ISP) is an organization that provides a myriad of services related to accessing, using, managing, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, no ...

s, and plays a crucial role in the evolution of

mobile communication Mobile telephony is the provision of wireless telephone services to mobile phones, distinguishing it from fixed-location telephony provided via landline phones. Traditionally, telephony specifically refers to voice communication, though th ...

s and the

information society An information society is a society or subculture where the usage, Content creation, creation, information distribution, distribution, manipulation and information integration, integration of information is a significant activity. Its main drive ...

Telephone call A telephone call, phone call, voice call, or simply a call, is the effective use of a connection over a telephone network between the calling party and the called party. Telephone calls are the form of human communication that was first enabl ...

s continue to be the industry's largest revenue generator, but due to advances in network technology, telecom today is less about

voice The human voice consists of sound made by a human being using the vocal tract, including talking, singing, laughing, crying, screaming, shouting, humming or yelling. The human voice frequency is specifically a part of human sound produ ...

and increasingly about text (

messaging A message is a unit of communication that conveys information from a sender to a receiver. It can be transmitted through various forms, such as spoken or written words, signals, or electronic data, and can range from simple instructions to co ...

email Electronic mail (usually shortened to email; alternatively hyphenated e-mail) is a method of transmitting and receiving Digital media, digital messages using electronics, electronic devices over a computer network. It was conceived in the ...

) and images (e.g. video streaming).

High-speed Internet In telecommunications, broadband or high speed is the wide- bandwidth data transmission that exploits signals at a wide spread of frequencies or several different simultaneous frequencies, and is used in fast Internet access. The transmission m ...

access Access may refer to: Companies and organizations * ACCESS (Australia), an Australian youth network * Access (credit card), a former credit card in the United Kingdom * Access Co., a Japanese software company * Access International Advisors, a hed ...

for computer-based data applications such as broadband information services and

interactive entertainment Interactive media refers to digital experiences that dynamically respond to user input, delivering content such as text, images, animations, video, audio, and even AI-driven interactions. Over the years, interactive media has expanded across ...

is pervasive.

Digital subscriber line Digital subscriber line (DSL; originally digital subscriber loop) is a family of technologies that are used to transmit digital data over telephone lines. In telecommunications marketing, the term DSL is widely understood to mean asymmetric dig ...

(DSL) is the main broadband telecom technology. The fastest growth comes from (

value-added Value added is a term in economics for calculating the difference between market value of a product or service, and the sum value of its constituents. It is relatively expressed by the demand curve, supply-demand curve for specific units of sale. ...

)

service Service may refer to: Activities * Administrative service, a required part of the workload of university faculty * Civil service, the body of employees of a government * Community service, volunteer service for the benefit of a community or a ...

s delivered over

mobile network A cellular network or mobile network is a telecommunications network where the link to and from end nodes is wireless and the network is distributed over land areas called ''cells'', each served by at least one fixed-location transceiver (suc ...

s. Insight Research projected that telecommunications services

revenue In accounting, revenue is the total amount of income generated by the sale of product (business), goods and services related to the primary operations of a business. Commercial revenue may also be referred to as sales or as turnover. Some compan ...

worldwide would grow from $2.2

trillion ''Trillion'' is a number with two distinct definitions: *1,000,000,000,000, i.e. one million 1,000,000, million, or (ten to the twelfth Exponentiation, power), as defined on the long and short scales, short scale. This is now the meaning in bot ...

in 2015 to $2.4 trillion in 2019.

Market segmentation

Of all the

customer In sales, commerce, and economics, a customer (sometimes known as a Client (business), client, buyer, or purchaser) is the recipient of a Good (economics), good, service (economics), service, product (business), product, or an Intellectual prop ...

market Market is a term used to describe concepts such as: *Market (economics), system in which parties engage in transactions according to supply and demand *Market economy *Marketplace, a physical marketplace or public market *Marketing, the act of sat ...

s, residential and

small business Small businesses are types of corporations, partnerships, or sole proprietorships which have a small number of employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being ...

markets are the toughest. With hundreds of players in the market, competitors rely heavily on price; success rests largely on brand name strength and investment in efficient billing systems. The

corporate A corporation or body corporate is an individual or a group of people, such as an association or company, that has been authorized by the state to act as a single entity (a legal entity recognized by private and public law as "born out of s ...

market remains the industry's favorite. Big corporate customers are concerned mostly about the quality and reliability of their telephone calls and data delivery while being less price-sensitive than residential customers. Multinationals, spend heavily on telecom infrastructure and premium services like high-security

private network In Internet networking, a private network is a computer network that uses a private address space of IP addresses. These addresses are commonly used for local area networks (LANs) in residential, office, and enterprise environments. Both the IPv ...

s and

videoconferencing Videotelephony (also known as videoconferencing or video calling) is the use of audio signal, audio and video for simultaneous two-way communication. Today, videotelephony is widespread. There are many terms to refer to videotelephony. ''Vide ...

. Network connectivity can also be provided to other telecom companies by wholesaling circuits to heavy network users like internet service providers and large corporations.

Value chain

Global players

Mergers and acquisitions

Around 24,800 M&A deals have been conducted in the telecommunication industry with either the acquirer or the target company coming from the telecommunications sector. In total over 5.712 bil. USD have been spent on M&A between 1985 and 2018 in this industry. There has only been one big M&A wave around 1999 and 2000. In most other industry there are three waves between 1990 and 2018. Since 1999 deal value shrunk by -90.12% and is expected to stagnate in 2018. Here is a list of the top ten telecommunication deals in history ranked by volume:

Recent developments

The telecommunications sector has seen a large increase in the recent years. Whereas in 2015 there were 3.3 billion active mobile broadband subscriptions worldwide, in 2020 there were around 7.7 billion. This increase was due, in part at least, to the deployment of

4G LTE In telecommunications, long-term evolution (LTE) is a standard for wireless broadband communication for cellular mobile devices and data terminals. It is considered to be a "transitional" 4G technology, and is therefore also referred to as 3 ...

. During the

COVID-19 pandemic The COVID-19 pandemic (also known as the coronavirus pandemic and COVID pandemic), caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), began with an disease outbreak, outbreak of COVID-19 in Wuhan, China, in December ...

, telecommunications was used to track the spread of

COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by the coronavirus SARS-CoV-2. In January 2020, the disease spread worldwide, resulting in the COVID-19 pandemic. The symptoms of COVID‑19 can vary but often include fever ...

and was use by

remote work Remote work (also called telecommuting, telework, work from or at home, WFH as an initialism, hybrid work, and other terms) is the practice of work (human activity), working at or from one's home or Third place, another space rather than from ...

ers to conduct business during the

COVID-19 lockdowns During the early stages of the COVID-19 pandemic, a number of Non-pharmaceutical intervention (epidemiology), non-pharmaceutical interventions, particularly lockdowns (encompassing stay-at-home orders, curfews, quarantines, and similar socie ...

Societies

Telecommunications Industry Association The Telecommunications Industry Association (TIA) is accredited by the American National Standards Institute (ANSI) to develop voluntary, consensus-based industry standards for a wide variety of information and communication technology (Informat ...

IEEE Communications Society The Institute of Electrical and Electronics Engineers (IEEE) is an American 501(c)(3) public charity professional organization for electrical engineering, electronics engineering, and other related disciplines. The IEEE has a corporate office i ...

* :Telecommunications organizations

References

{{industries Telecommunications economics Industries (economics)