Wired Telecommunications Carriers – Not in such a bad financial position as it seems

Wired telecom carriers industry consists of companies that are providing network service embedded in a coaxial cable. The range of such services extends from local and long distance calling to Internet access such as ISPs, DAL etc. These services can be provided through either of three mechanisms; by owning a network, by leasing it, or through a combination of these two.

 

The recent research by IBIS Wolrd indicated an increase in the demand for internet access and predicted its positive impacts on wired telecommunications carriers industry. Most of these impacts will come through increased demand of TV program distribution, and local plus long distance calls and both these impacts together add up to give around 20 percent of the revenue to this industry. Besides the above mentioned services; equipment sales, installations, data transmission, and voice mails are some of the other wired telecommunications carriers services that are going to add up to the benefits of this industry.

Wired telecommunications carriers industry is also susceptible to lose out its current market share in coming years through emerging industry trends.  Two significant inventions with this regard are VoIP (voice over internet protocol) and wireless telephony that are believed to eat up a good share of market from wired telecommunications carriers.  Furthermore, this impact will be carried forward to next couple of years due to an increasing demand for up to date compatible internet access features. Yet another key concern for the wired telecommunication carriers industry is the presence of three big companies (Century Link Inc, Verizon Communications Inc, and AT&T Inc) and subsequent concentration brought by them. Moreover Cablevision stock has also been performing well in FY14. Cablevision stock quote has recorded US $ 17.68 up by 0.03 (0.17%) points.

To guide investors as to where to look for investments in wired telecommunication carriers, here are some of the financial statistics related to this industry. The revenue for the industry stands at a significant figure of $106bn and is expected to grow to $130.3bn at an annualized rate of around 2.1% for the subsequent five years from now on. The current employment statistics for the industry stands at 273,534 with an approximate1309 different kind of businesses.

Financial position of some of the giant companies in USA wired telecommunication carriers industry is such that AT&T’s stock is valued at $36.74 as per 16^th May, 2014. This value is 0.6% higher than its previously close value of $36.52.  The company has a share volume of 24015894, market capital value of $190680600000, P/E ratio of 10.68, EPS of $ 3.44, annualized dividend of $ 1.84, and a current yield of 5.01%. Another major company in wired telecommunication carriers industry is Century Link which has a stock value of $38.18 as per 16^th May, 2014. This value is 0.93% higher than its previously close value of $ 37.83.  The company has a share volume of 4518447, market capital value of $ 2186748511, EPS of -$0.56, annualized dividend of $2.16, and a current yield of 5.66 %. Besides USA based wired telecommunication carriers, China Telecom, Deutsche Telekom, and Nippon Telegraph are some of the important companies in international industry of wired telecommunications carriers.  For more information on up to date financial statistics of different telecommunication carriers please visit Bidnessetc.com.