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COMMUNICATIONS INDUSTRY.   Term Paper ID:22061 Click to get this paper

Essay Subject: Overview of industry, focusing on telecommunications & conditions in Nebraska. Chart.... More...

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Paper Abstract: Overview of industry, focusing on telecommunications & conditions in Nebraska. Chart. Paper Introduction: The communications industry in the United States is actually composed of many subindustries, each of which contains large, even huge, participants. The sudindustries are related by the fact that they all participate in electronic communications of one type or another, but they are widely diverse beyond that. As technology grows more complex, it also brings these widely diverse entrance points closer together, with the result that phone companies are now venturing into cable television ventures, and cable television companies are interested in providing interactive entertainment and educational opportunities. This research examines the broad communications industry as a whole, then focuses on the telecommunications industry in particular, with an emphasis on the telecommunications industry in Nebraska. The Standard Industry Code (SIC) for the communications indus Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Cable and pay television (SIC 4841) has had the greatest impact onbroadcast television during the 198 s and 199 s. U.S. Nearly 2 companies in this industry had revenues in excess of $1 billionin 1994.[vii] Television broadcasting stations are closely regulated, andcompetition is fierce in this industry. This industry segment is dominated by Houston Industries, a utilityin the Houston area whose primary business is electricity, but who ownscable stations in the area, as well. West venture came out of a concerted effort by the stategovernment and industry to develop an efficient and economical data networkto offer varied services. MFS is publicly held (as are most telecommunicationscompanies) and employs nearly 1, . The international market does not yet have this level ofinitial market penetration, with the result that American companies canenter the market with basic as well as advanced services, which requireless of a financial investment. [v]"SIC 4822," InfoTrac SIC Rankings, Sunnyvale, CA: InformationAccess Company, 1995, 1. This category has alarge concentration of satellite and aerospace communication companies, andthere is a great deal of disparity between the leading company (Contel,with 1994 revenues in excess of $2 billion) and the number two company(COMSAT, with 1994 revenues of nearly $6 million).[ix] All of the industries included in the SIC 48xx grouping are regulatedby the Federal Communications Commission (FCC), which was established in1934 to regulate and oversee interstate and foreign commerce incommunications. In 1993, nearly 5 percent of all merger and acquisitionactivities included communications companies. The end result is aninteresting and dynamic market that has a great deal of reward (and risk)for those companies willing to participate. More than 94 percent ofAmerican households are already part of the American telecommunicationsnetwork, requiring advanced service offerings for additional revenuegeneration. Increased competition islikely to be of most benefit to telecommunications users, while new serviceofferings will expand the total size of the international market andattract more international participants. However, a total of 13 competitorsin this market had revenues exceeding $1 million in 1994 (the top fivecompanies were rounded out by Bell South, GTE Telephone Operations andNYNEX).[iv] This is the most lucrative of the telecommunications submarketin the communications industry. radio ||4822 |Telegraph and Other Communications ||4832 |Radio Broadcasting Stations ||4833 |Television Broadcasting Stations ||4841 |Cable and Other Pay TV Services ||4899 |Communication Services not covered elsewhere | Radiotelephone Communications (SIC 4812) is the cellular phoneindustry. [iv]"SIC 4813," InfoTrac SIC Rankings, Sunnyvale, CA: InformationAccess Company, 1995, 1. Sunnyvale, CA: Information Access Company, 1995."SIC 4899." InfoTrac SIC Rankings. The telegraph and other communications segment (SIC 4822) was led byLotus Development Corporation in 1994, with revenues in excess of $9 million. [xiii] Lincoln Telephone and Telegraph Company, based in Lincoln, Nebraska,had 1993 revenues of more than $156 million, and employs more than 1,4 .This is a private subsidiary of Lincoln Telecommunications Company, and itprovides local, long distance and cellular communication services.[xiv]Lincoln Telecommunications is a public company with 1993 revenues in excessof $184 million.[xv] It is indicative of the competitiveness of the industry that althoughNebraska has strong telecommunications companies that are based in thestate, national telecommunications companies have targeted the region forexpansion. "U.S. [xvii]"U.S. "Government, Telco Partnership Sows Seeds for Nebraska Future." Telephony, 19 August 1991, 8."MFS Communications Company." InfoTrac Company Information. The other natural grouping for analysis is that oftelecommunications, which encompasses radiotelephones and traditionaltelephones. Developments that are underway now couldhave as significant a change on the industry as did the breakup of the AT&Tmonopoly, a change that brought about increased competition in an industrythat had never known competition. Regulatory restrictions are quickly being eliminated, whilerestrictions that have not been overtly lifted are being rendered obsoleteby innovations in technology. The state encouraged the development ofadvanced technology, including interactive video, frame relay and localarea signaling services with input from the local exchange carriers and byworking closely with the Nebraska Telephone Association. [x]Stahl-Gibney, T16. West Plans Video Test in Omaha." Broadcasting & Cable, 28 June 1993, 4 -41."SIC 48 ." InfoTrac SIC Rankings. WestCommunications is a Bell operating company subsidiary that selected Omahabecause of its central location. Broadcasting,including radio and television, can be combined and considered; moreextensive research might include cable and other pay television service, aswell. Sunnyvale, CA: Information Access Company, 1995."SIC 4841." InfoTrac SIC Rankings. Thesepartnerships are likely to be forged at the local, state and nationallevels as the stakes increase at each point. The closest competitor to AT&T in1994 was GTE, with its $19 in revenue. This researchexamines the broad communications industry as a whole, then focuses on thetelecommunications industry in particular, with an emphasis on thetelecommunications industry in Nebraska. Wireless communications are becomingincreasingly common, and the separation between industry subgroups isnarrowing as cable television providers seek to provide wirelesscommunication and telephone service through coaxial connections already inthe home. Sunnyvale, CA: Information Access Company, 1995."SIC 4833." InfoTrac SIC Rankings. "Nebraska Scores a Frame Relay First." Telephony, 1 February 1993, 42-45.Scully, Sean. Sunnyvale, CA: Information Access Company, 1995."SIC 4812." InfoTrac SIC Rankings. Companies such as AT&Tacquired companies in related industries (McCaw Cellular), and BritishTelecom invested more than $4 billion in MCI Communications.[xi] American companies are also considering the international market asthey view the opportunities that exist there. U.S. One of the outgrowths of this phenomenon is the formation of strategicpartnerships as well as the emergence of a greater number of mergers andacquisitions. MFS, based inOmaha, is a provider of local telecommunication services with 1993 revenuesof $141.1 million. [xviii]Charles Mason, "Government, Telco Partnership Sows Seeds forNebraska Future," Telephony, 19 August 1991, 8. Telecommunications Industry Survey. Once dominated by radionetworks, this industry has become more fragmented, although largecompanies which own dozens of stations throughout the nation continue todominate the field. Sunnyvale, CA: Information Access Company, 1995."Lincoln Telephone and Telegraph." InfoTrac Company Information. Sunnyvale, CA: Information Access Company, 1995.Osland, Norm. Westbenefited directly from this effort since they operate more than 58 percentof the state's access lines, but other companies, including manyindependents, also serve to benefit from the partnership that was forgedbetween industry and government.[xviii] This concerted effort, sparked by the recognition that businessesconsider their local area networks to be indispensable to their businesssuccess, represents a growing interest by government in providing anenvironment in which telecommunications and its associated technology canbe effectively cultivated. There was recently a bitter andexpensive fight between Paramount and Viacom, but with revenues and profitsas large as these, such contentiousness is to be expected. Some companies are likely to seetraditional market segments disappear, while emerging companies may bepoised to take advantage of the new technology. Data compression innovations also make itpossible to deliver moves to a home television set through the existingtelephone network. Capital Cities (ABC) leads the industry with 1994sales in excess of $5 billion. Coaxialcable and fiber optics give companies the ability to deliver hundreds ofvoice, data and video channels. West, for example, announced in early 1994 that itintended to use Omaha as a site for a trial installation of interactivetechnology that will eventually include a 14-state region. [xiii]"MFS Communications Company," InfoTrac Company Information,Sunnyvale, CA: Information Access Company, 1995, 1. [xvii] The U.S. Where cable televisionwas once limited largely to rural areas where broadcast televisionreception was poor, it has now become a common feature in most Americanhomes. Sunnyvale, CA: Information Access Company, 1995.Mason, Charles. This subindustry (known as telecommunications) represents asignificant part of the American economy and is of significant importancewhen considering the emerging information superhighway.[x] The telecommunications industry is itself in the midst of rapidchange. The result is that the state benefits from theincrease in technology through increased jobs, a more attractive businessenvironment, and increased tax revenues.[xix] The telecommunications industry as a whole is likely to continue tosee additional competition and increased partnerships between governmentand industry as governments seek to protect their communities. Gannett, CBS, NBC and Viacom round out thetop five in this segment with sales ranging from above $2 billion to $3.6billion (Gannett).[vi] These companies are subject to regulation by theFCC, and are also responsible to their stockholders as going-concern publiccompanies. Prices are expected to fall, enhancing demand forservices, and the telecommunications market is expected to grow at a steadypace throughout the 199 s. The company had revenues in 1994 ofmore than $12 billion. [xvi]Sean Scully, "U.S. This industry segment is made up of telegraph companies, but alsoincludes facsimile companies and express mail services (such as BusinessMail Express, not United Parcel Service). The FCC is to ensure theavailability of affordable telephone service, for example, which, in 1934,was deemed to include a monopoly (AT&T). Unlike many other industries, the communications industryis considered to be in the "public interest," which was used as thejustification for its highly regulated status. End Notes Bibliography"Lincoln Telecommunications." InfoTrac Company Information. [iii]Susan Stahl-Gibney, Telecommunications Industry Survey, New York: Standard & Poor's, 2 June 1994, T21. West all hadrevenues of more than $1 billion during the same year.[ii] The FCC hasmoved to encourage competition in the wireless services and has soughtparity for providers in this market segment. The information superhighway, which has received widespread attentionrecently, also is dependent on the telecommunications industry. Sunnyvale, CA: Information Access Company, 1995."SIC 4822." InfoTrac SIC Rankings. Sunnyvale, CA: Information Access Company, 1995."SIC 4832." InfoTrac SIC Rankings. The communications industry as a whole is difficult to analyze from asingle viewpoint because its component parts are so mixed. The communications industry in the United States is actually composedof many subindustries, each of which contains large, even huge,participants. U.S. Capital Cities,Paramount, Times Mirror and Gannett round out the top five companies inthis category with 1994 revenues ranging from $5.6 billion to $3.6 billion. West Plans Video Test in Omaha," Broadcasting& Cable, 28 June 1993, 4 . The result is that Omaha was among the first markets in thecountry to have access to interactive technology. [vi]"SIC 4832," InfoTrac SIC Rankings, Sunnyvale, CA: InformationAccess Company, 1995, 1. As technology grows more complex, it alsobrings these widely diverse entrance points closer together, with theresult that phone companies are now venturing into cable televisionventures, and cable television companies are interested in providinginteractive entertainment and educational opportunities. [ix]"SIC 4899," InfoTrac SIC Rankings, Sunnyvale, CA: InformationAccess Company, 1995, 1. The Standard Industry Code (SIC) for the communications industry is48 . GTE dominates this industry grouping, with 1994 revenues of morethan $19 billion; Ameritech Corp., SBC Communications and U.S. [xii]Ibid. The emergenceof a fourth network (Fox) has increased the stakes in this market to thepoint that some stations are seeking additional legislation to protecttheir service areas and their investments as media companies include notjust a single medium (such as radio stations), but expand their influenceto radio, television and newspapers/magazines. Congress has mandated thatmobile services are regulated in the same way throughout the country;currently, the FCC has different regulations for various services, whichsome analysts feel gives mobile radio operators more leeway than cellularcarriers.[iii] Telephone communications excluding radio (SIC 4813) includes thetelephone companies that most Americans are familiar with. Tele-Communications, Sammons Enterprises, Knight-Ridder and Viacom round out the top five companies in this market, and morethan 17 companies had 1994 revenues of more than $1 billion.[viii] The last SIC code covered by the communications category is 4899,those communication services not included elsewhere. [ii]"SIC 4812," InfoTrac SIC Rankings, Sunnyvale, CA: InformationAccess Company, 1995, 1. [vii]"SIC 4833," InfoTrac SIC Rankings, Sunnyvale, CA: InformationAccess Company, 1995, 1 [viii]"SIC 4841," InfoTrac SIC Rankings, Sunnyvale, CA: InformationAccess Company, 1995, 1. The Nebraska state government worked with local exchange carriers inorder to develop the plans necessary to overhaul the state'stelecommunications infrastructure in order to keep the state on a par withother communities in technology. West in Omaha." Editor & Publisher, 29 January 1994, 22.----------------------- [i]"SIC 48 ," InfoTrac SIC Rankings, Sunnyvale, CA: InformationAccess Company, 1995, 1. [xv]"Lincoln Telecommunications," InfoTrac Company Information,Sunnyvale, CA: Information Access Company, 1995, 1. New York: Standard & Poor's, 2 June 1994."U.S. Sunnyvale, CA: Information Access Company, 1995."SIC 4813." InfoTrac SIC Rankings. The undisputedleader in this field is AT&T, with 1994 revenues of more than $67 billionand an international market presence. Sunnyvale, CA: Information Access Company, 1995.Stahl-Gibney, Susan. The FCC is also responsible forlicensing radio and television stations, and for ensuring that thesestations also perform in the "public interest." Censorship and rulesregarding advertising and access are all controlled by the FCC. [xi]Ibid., T15. Growth in domestic and international markets should be reflected inincreased revenues for the industry as a whole; analysts expect thatoperating revenues for American telecommunications companies will increaseat a strong 7 percent annually for the remainder of the decade;international growth rates may be as high as 2 percent.[xii] The Nebraska telecommunications industry illustrates some of whatdomestic companies are doing to market their services. The sudindustries are related by the fact that they allparticipate in electronic communications of one type or another, but theyare widely diverse beyond that. West in Omaha," Editor & Publisher, 29 January 1994, 22. Within this broad category are another seven subcategories:[i]|SIC Code |Category ||4812 |Radiotelephone Communications ||4813 |Telephone Communications, exc. [xix]Norm Osland, "Nebraska Scores a Frame Relay First," Telephony, 1February 1993, 42. Television broadcasting stations (SIC 4833) are led by AFLAC (aninsurance holding company that also owns a number of stations in a varietyof markets) with 1994 revenues of more than $15 billion. Consumers will, according to the industry, soon be ableto receive library databases and on-line delivery of newspaper articlesthrough these same connections. [xiv]"Lincoln Telephone and Telegraph," InfoTrac Company Information,Sunnyvale, CA: Information Access Company, 1995, 1. Companies in this market segmenttend to be smaller than in other sectors of the communications industry,with only the top 17 having 1994 sales in excess of $1 million.[v] Radio broadcasting stations (SIC 4832) demonstrate the wide variety ofcompanies that participate in the radio market. The project as originally conceivedincluded a six-month technical test period followed by a year-long markettrial to determine what services the market will support and how much itwill pay for the services.[xvi] However, FCC delays forced the company toexpand the service before it had completed the testing that it initiallyintended; increased competition in the interactive area also forced thisdecision. Greater competition has meant a dramatic increase in the number ofservice providers and a steady increase in the number and type of servicesbeing provided. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.