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Top 10 Carriers in the US - Highlighting Mergers of Former Bell Companies - The US market has seen important changes over the past two years with the mergers of AT&T and SBC, Verizon and MCI as well as Sprint and Nextel
Top 10 Carriers in the US - Highlighting Mergers of Former Bell Companies

 

NewswireToday - /newswire/ - Stuttgart, Baden Württember, Germany, 2006/12/15 - The US market has seen important changes over the past two years with the mergers of AT&T and SBC, Verizon and MCI as well as Sprint and Nextel.

   
 
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The US market has seen important changes over the past two years with the mergers of AT&T and SBC, Verizon and MCI as well as Sprint and Nextel. AT&T was the top US carrier in 2005, having a 25% market share in terms of net revenues (see Fig. 1), followed by Verizon with 19% and Sprint Nextel with 10%. AT&T’s dominance in the US market was helped by its merger with SBC, which adopted the AT&T name, as well as SBC’s 60% ownership of Cingular Wireless, which had the largest market share, at 26%, in terms of mobile subscribers in 2005. SBC’s merger with AT&T gave the new company increased dominance in the fixed line and datacom market. Verizon also has a strong fixed line and broadband market share but it is its mobile segment, Verizon Wireless, which has for the most part helped Verizon reach the number two spot in terms of net revenues. Verizon Wireless had about 25% mobile subscribers market share in 2005.

Fig. 2 shows a simulated version of 2005 revenues, highlighting the combined market shares of AT&T-BellSouth and Verizon-MCI. The Verizon-MCI merger helped the company expand thanks to MCI’s international long distance networks and helped create the Verizon Business segment targeted at SMEs and large corporate customers. If the AT&T-BellSouth merger goes through, the company would have 30% and Verizon-MCI 21% of a $315bn market, giving them in their home market important economies of scale, which they could in turn leverage for international expansions. As a comparison, the European market is worth around $370bn but the two largest players, Deutsche Telekom and France Télécom, have respectively only 12.5% and 11.6% of the market.

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Title 1: Top-10 US telecom groups — all services in net revenues — 2005
Title 2: Top-10 US telecom groups — all services in net revenues — 2005 with simulated AT&T-BellSouth and Verizon-MCI merger

About InfoCom
InfoCom is a market research and consultancy company with almost 20 years experience providing strategic analyses and planning assistance to stakeholders in the telecommunications, IT and multimedia industries. InfoCom’s independent and fact-based analyses highlight trends and opportunities, supporting decision makers to understand market dynamics in order to improve their competitive advantage.

 
 
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Top 10 Carriers in the US - Highlighting Mergers of Former Bell Companies

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