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Telecom Services in Vertical Markets, 2011-2016

a market research report

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Market Segmentation
Table of Contents
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Telecom Services in Vertical Markets, 2011-2016, the fourteenth 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.

As competition drives down margins, solution selling into vertical markets enables real competitive differentiation, and allows increasingly sustainable profit margins. Vertical marketing opens new doors, taps niche markets, and builds customer loyalty. When telecom providers focus on vertical market solutions, they move away from the commodity voice sale and toward higher-margin, value-added services.


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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 Bureau of Labor Statistics, the Bureau of Economic Analysis (BEA), the Federal Communications Commission (FCC), and Standard & Poor’s (S&P).

    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 ...................

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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
              2.2.2  Financial, Insurance, and Real Estate Services
              2.2.3  Professional Business Services
              2.2.4  Communications
              2.2.5  Durable Manufacturing
              2.2.6  Healthcare
    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 Mobile Enterprise
             2.4.2  Ethernet in the Enterprise
             2.4.3  Private Line Trends
             2.4.4  Managed Services

    Chapter III
    DRIVERS AND EXPENDITURES
    3.1     Drivers of Telecom Expenditures
    3.2     Growth in Employment
              3.2.1  Growth in Occupations
    3.3     Size and Number of Establishments

    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
              4.3.1  Voice Rank
              4.3.2  Data Rank

    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, 2011 and 2016
    I-3    Top-Tier Business Expenditures for Telecom Wireline Services, 2011 & 2016
    I-4    Total US Telecom Wireless Services, 2011 and 2016
    I-5    Top-Tier Business Expenditures for Telecom Wireless Services, 2011 & 2016

    Chapter II
    II-1   IT and Telecom Healthcare Market Structure
    II-2   Healthcare Networks
    II-3   AT&T Connect Application Participant Status as Viewed on iPhone
    II-4   iPhone Dashboard Utility
    II-5   Global Market for Enterprise Mobility Solutions, 2011-2016
    II-6   Typical Layout for a Full Circuit
    II-7   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, 2011-2016
    V-2 US Total Wireline Revenue, 2011-2016
    V-3 US Wireline Expenditures by Business vs. Residential, 2011-2016
    V-4 US Business Top-Tier vs. All Other Telecom Expenditures, 2011 & 2016
    V-5 US Business Wireline Broadband Data Revenue, 2011-2016
    V-6 US Business Wireline Data Market Share, 2011 and 2016
    V-7 US Total Wireless Revenues, 2011-2016
    V-8 Top-Tier Business Wireless Expenditures vs. All Others, 2011 & 2016

    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 Characteristics of Ethernet Service Varieties
    II-12 Managed Services Segments
    II-13 Managed Service Solutions by Business Size

    Chapter III
    III-1 Employment by Major Occupational Groups, 2008 & 2018 Projected
    III-2 Sixteen Fastest Growing Occupations, 2008-2018
    III-3 Total US Business Establishments by Industry Segment, 1Q2011
    III-4 Distribution of US Companies by Size, 2010
    III-5 Telecom Wireline Expenditures by Vertical Market, 2011 Forecast

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

    Chapter V
    V-1 US Total Wireline Revenue by Type of Provider, 2011-2016
    V-2 US Business Wireline Revenue by Type of Provider, 2011-2016
    V-3 US Business Telecom Wireline Expenditures by Vertical Market, 2011-2016
    V-4 US Business Wireline Broadband Data Rev. as a % of Local & Long Distance
    V-5 US Total Wireline Broadband Data Exp.by Vertical Market, 2011-2016
    V-6 US Business Wireless Revenues, 2011-2016


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