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United States Telecommunications Report Q4 2009
Market |
Telecommunications |
Report Type |
Market Research |
Country |
United States |
Published |
27 August 2009 |
Number of Pages |
99 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
The US reaction to the financial crisis has been watched closely as President Barack Obama pumped US$789bn into the economy in February 2009. With a shrinking economy and rising unemployment, virtually no area of the economy is unscathed. For telecoms operators this has meant facing a decrease in subscriber spending as worried consumers look to lower their outgoings. A number of different strategies have been put in place to counter this trend and try to maintain growth. BMI has introduced a new chapter to the US Telecommunications Report examining the different moves by players in the telecoms market as well as government strategy for facing the recession.
Also new to this report is the comparison of the US market with eight other developed states as part of the proprietary Business Environment Ratings. The rankings see the US fit in joint fourth place with Australia despite considerable differences to their individual scores. There remains good potential for growth in the US market supported by its high Independence of Regulator score, shared by the majority of markets in the ratings. While the US economy has been badly affected by the economic downturn it remains the largest in the world.
The report has broken down mobile subscriptions by region for the first time allowing for more granular analysis of the market. What is clear is how quickly mobile services have spread across the country with little difference between regions. At the end of 2008, according to the latest data available from the regulator, the Federal Communications Commission (FCC), all areas of the country had penetration rates above 80% although some regions were closer to 90%. Major state economies such as New York, California and Texas have some of the highest rates around, with regional operators competing fiercely against larger rivals.
The mobile market is dominated by Verizon Wireless following its acquisition of Alltel's subscribers in Q109. The operator has even continued to improve on its market share following the acquisition.
Speculation over the future of other smaller operators continues to circulate but merger and acquisition activity has slowed since the crisis began.
The FCC has begun an investigation into market competition and innovation after a series of complaints, particularly over exclusive handset deals and the effects on smaller operators. The country's major service providers maintain that the market is competitive and innovation continues.
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