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Telecom Services in Vertical Markets 2008-2013, the ninth 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;
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.
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 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, the Federal Communications Commission (FCC), Standard & Poor’s (S&P), and a private study that was conducted on 500,000 business sites completed in the third quarter of 2006.
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—
While the US economy is in a slow recovery, business opportunities for telecommunications providers in the enterprise market still seem harder to find than ever before. According to the BLS, the employment picture is not sanguine. In April 2002, unemployment hit an eight-year high of 5.9 percent. The picture did not improve as the US rolled into 2003; by April, unemployment hit six percent, in May it rose to 6.1 percent, and by June the number peaked at 6.4 percent. Although the unemployment rate improved to 5.4 percent by August of 2004, some economists insisted that the rate only improved because a significant number people dropped out of the “actively looking for jobs” market, which is parcel to the overall unemployment calculation. In December of 2005, the unemployment rate dropped to 4.9 percent. Beginning in March of 2005, the monthly rate began fluctuating between 4.6 percent and 5.1 percent.
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