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Telecom Services in Vertical Markets 2009-2014

a market research report

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Table of Contents
Press Release

Market Segmentation

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Telecom Services in Vertical Markets, 2009-2014, the twelfth market analysis study in this series from Insight Research, quantifies the telecom spending habits of major US industry segments for wired and wireless services.

This report examines wired and wireless spending trends in the general economy and then delves into wired voice and data service spending patterns and wireless spending for specific industry segments, including: healthcare; construction; retail trade; wholesale
trade; educational services; financial, insurance, and real estate services; professional business services; hotel and lodging; transportation; communications; utilities; entertainment and media; durable manufacturing; and non-durable manufacturing.


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    Report Excerpt

    1.1 Vertical Industry Telecommunications Spending

    The objective of this market research report is to examine and quantify the opportunities in various vertical industries for the telecommunications service provider community.  Insight examines 14 vertical markets in this report, segmented according to Standard Industrial Classification (SIC) developed by the US Department of Commerce and the North American Industry Classification System (NAICS) developed by the Bureau of Labor Statistics (BLS).  These 14 vertical markets represent the majority of establishments in the US.  This study begins with total telecom revenues, divides them between the business and the residential markets, and then examines the driving forces in each of 14 selected vertical industry markets.  The forecasts and segmentation in this report are based on data from the US Bureau of the Census, the BLS, the Bureau of Economic Analysis (BEA), the Federal Communications Commission (FCC), Standard & Poor’s (S&P), and a private study that was conducted on approximately 468,000 business sites completed in the third quarter of 2008.

    Telecommunications products and services are, by their very nature, commodity products, since they exhibit little or no customization.  Telecom providers recognize the commodity nature of their product when they market horizontally—offering everything to everyone, everywhere.  Horizontal marketing provides generic “one-size-fits-all” offerings.  In contrast, vertical marketing focuses on developing solutions to user problems within specific industries.  In this market analysis report our thesis is as follows:  with competition eating into already anemic profit margins, solution selling by vertical industry becomes an attractive way for telecommunications vendors to differentiate and a viable way to maintain profitability and sustained growth.  Four principal growth factors affect telecommunications expenditures ......

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    Market Segmentation

     

    Total Wireline Market
       Business vs. Residential Wireline Market

    Verticals: Healthcare, Construction, Retail Trade,Wholesale Trade, Educ,Social Svcs & Member Org, Financial, Insurance, Real Estate Svcs,Professional Business Svcs, Hotel & Lodging, Transportation, Communications, Utilities, Entertainment & Media, Durable Manufacturing, Non-Durable Manufacturing, All Others

     Expenditures by Vertical Markets
       Wireline Data vs. Voice Markets
       Wireline Data Expenditures by Vertical Markets

    Wireless Expenditures by Verticals


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    Table of Contents

     

    Chapter I
    EXECUTIVE SUMMARY

    1.1        Vertical Industry Telecommunications Spending
    1.2        Telecommunications and Vertical Marketing
    1.3        Telecommunications Expenditures by Vertical Industry

    Chapter II
    MARKET OVERVIEW

    2.1        Classification Systems
    2.2        Segmentation and Performance
                 2.2.1  Wholesale Trade
                           2.2.1.1   S&P Indices
                2.2.2   Financial, Insurance, and Real Estate Services
                           2.2.2.1   S&P Indices
                2.2.3   Professional Business Services
                           2.2.3.1   S&P Indices
                2.2.4   Communications
                           2.2.4.1   S&P Indices
                2.2.5   Durable Manufacturing
                           2.2.5.1   S&P Indices
                2.2.6   Healthcare
                           2.2.6.1   S&P Indices
    2.3       The Healthcare Industry in the Spotlight
                2.3.1   An Industry Structure Ready for Change
                2.3.2   Carrier Opportunities
                2.3.3   The Importance of Vertical Marketing
    2.4       Telecommunications Industry Trends
                2.4.1   The Green Enterprise Agenda
                           2.4.1.1   Real-Time Environmental Compliance and Audit
                           2.4.1.2   Branch Office/Remote Office
                           2.4.1.3   Mobile Workers
                           2.4.1.4   Supply Chain and Field Optimization
                           2.4.1.5   ICT Device Recycling
                           2.4.1.6   Building Management
                           2.4.1.7   Telecommuting
                           2.4.1.8   Mobile Resource Management
                           2.4.1.9   Global Data Center Management and Grid Management
                           2.4.1.10 Green IT Data Centers
                           2.4.1.11 Enterprise Summary: The Environmental Footprint
                2.4.2   Ethernet in the Enterprise
                           2.4.2.1   Ethernet Gains, Legacy Loses
                2.4.3   Private Line Trends
                           2.4.3.1   Private Line Services: Another Transition
                           2.4.3.2   Competition in the Local Loop
                           2.4.3.3   Traditional Private Lines
                           2.4.3.4   Alternatives to Private Line Services
                2.4.4   Managed Services
                           2.4.4.1   Managed Services Industry Structure

    Chapter III
    DRIVERS AND EXPENDITURES

    3.1        Drivers of Telecom Expenditures
                 3.1.1   Growth in Employment
                 3.1.2   Growth in Occupations
                 3.1.3   Size and Number of Establishments
    3.2        Telecom Expenditures by Vertical Markets
                            3.2.1.1   Direct Dial
                            3.2.1.2   ISDN
                            3.2.1.3   DSL
                            3.2.1.4   T1
                            3.2.1.5   T3
                            3.2.1.6   800 Lines
                            3.2.1.7   Cell Phones
                            3.2.1.8   VoIP Presence and Providers

    Chapter IV
    MARKET SEGMENT PROFILES & CARRIER DATA

    4.1        Carrier Opportunities
                 4.1.1   Education Purchasing Trends
                 4.1.2   Government Purchasing Trends
                 4.1.3   Healthcare Purchasing Trends
    4.2        Carrier Expenditures
    4.3        Carriers Ranked By Businesses

    Chapter V
    VERTICAL MARKET FORECASTS

    5.1        Overview
    5.2        Methodology
    5.3        Prognoses
                 5.3.1   US Total Wireline Market
                 5.3.2   US Business vs. Residential Wireline Markets
                 5.3.3   US Business Expenditures in Vertical Markets
                 5.3.4   US Wireline Data vs. Voice Markets
                 5.3.5   US Business Wireline Data Expenditures in Vertical Markets
                 5.3.6   Total US Wireless Market
                 5.3.7   US Business Wireless Expenditures in Vertical Markets

    Table of Figures

    Chapter I
    I-1        Drivers of Telecom Expenditures in Vertical Markets
    I-2        Total US Telecom Wireline Market, 2009 and 2014
    I-3        Top-Tier Business Expenditures for Telecom Wireline Services,
    I-4        Total US Telecom Wireless Services, 2009 and 2014
    I-5        Top-Tier Business Expenditures for Telecom Wireless Services

    Chapter II
    II-1       Distribution of Establishments by Healthcare Segment, 2009
    II-2       Distribution of Healthcare Employment, 2009
    II-3       IT and Telecom Healthcare Market Structure
    II-4       Healthcare Networks
    II-5       Typical Layout for a Full Circuit
    II-6       Managed Services Gross Margins

    Chapter III
    III-1      Drivers of Telecom Expenditures in Vertical Markets
    III-2      Total US Employment, 1986-2016
    III-3      Total US Business Establishments, 1992-2008

    Chapter V
    V-1       US Business Wireline and Wireless Revenues, 2009-2014
    V-2       US Total Wireline Revenue, 2009-2014
    V-3       US Wireline Expenditures by Business vs. Residential, 2009-2014
    V-4       US Business Top-Tier vs. All Other Telecom Expenditures
    V-5       US Business Wireline Broadband Data Revenue, 2009-2014
    V-6       US Business Wireline Data Market Share, 2009 and 2014
    V-7       US Total Wireless Revenues, 2009-2014
    V-8       Top-Tier Business Wireless Expenditures vs. All Others

    Table of Tables

    Chapter II

    II-1       Classification System Coding
    II-2       North American Industry Classification System Divisions
    II-3       Wholesale Trade Representative Indices
    II-4       Financial, Insurance, and Real Estate Services Representative Indices
    II-5       Professional Business Services Representative Indices
    II-6       Communications Representative Indices
    II-7       Durable Manufacturing Representative Indices
    II-8       Healthcare Representative Indices
    II-9       Healthcare Market Segments
    II-10     Market Segments for Wireline and Wireless
    II-11     Green Communications Portfolio of Product Domains, Services & Applications
    II-12     Application of Technology to Cross Industry Needs
    II-13     Green Communications Footprint: Enterprise Economic Sector
    II-14     Characteristics of Ethernet Service Varieties
    II-15     Managed Services Segments
    II-16     Managed Service Solutions by Business Size

    Chapter III
    III-1       Employment by Major Occupational Groups, 2006 and 2016 Projected
    III-2       Twelve Fastest Growing Occupations, 2006-2016
    III-3       Total US Business Establishments by Industry Segment, 2Q2009
    III-4       Distribution of US Companies by Size, 2006
    III-5       Telecom Wireline Expenditures by Vertical Market, 2009 Forecast
    III-6       Industries in the Data Communication Lines and Corresponding Vertical Markets
    III-7       Average Monthly Long Distance Expenditures per Site by Size
    III-8       Rank of Average Monthly Long Distance Expenditures per Site by Size
    III-9       Rank of Direct Dial Lines per Site by Size, 2005, 2006, 2007, 2008
    III-10     Rank of ISDN per Site by Size, 2005, 2006, 2007, and 2008
    III-11     Rank of DSL Lines per Site by Size, 2005, 2006, 2007, and 2008
    III-12     Rank of T1 Lines per Site by Size, 2005, 2006, 2007, and 2008
    III-13     Rank of T3 Lines per Site by Size, 2005, 2006, 2007, and 2008
    III-14     Rank of 800 Lines per Site by Size, 2005, 2006, 2007, and 2008
    III-15     Rank of the Number of Cell Phones per site by Size, 2005, 2006, 2007, and 2008
    III-16     Percent of Sites with VoIP Presence by Size, 2006, 2007, and 2008

    Chapter IV
    IV-1       US Government Spending on Education, 1994 and 2014 Projected
    IV-2       Healthcare Segment Dimensions and Trends

    Chapter V
    V-1        US Total Wireline Revenue by Type of Provider, 2009-2014
    V-2        US Business Wireline Revenue by Type of Provider, 2009-2014
    V-3        US Business Telecom Wireline Expenditures by Vertical Market, 2009-2014
    V-4        US Business Wireline Broadband Data Revenue as a % of Local & Long Dist.
    V-5        US Total Wireline Broadband Data Expenditures by Vertical Market
    V-6        US Business Wireless Revenues, 2009-2014


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