US Telecommunications Industry
Telecommunications as an industry in United States is growing rapidly and has a major share in the GDP (gross domestic product) of the nation. Like any other industry, telecommunications in US also faced many encumbrances in its development stages but later emerged as one of the most revenue generating sector of the nation.
Distinct from most of the other countries, the United States never nationalized its telecommunications industry.
From 1876 to 1893, American Telephone and Telegraph Co. emerged as the principal commercial force in developing telephone services and networks, on the strength of exclusive patents it held for the technology developed by Alexander Graham Bell.
After 1893, when more than a few key patents expired, US saw a plethora of small and large telephone companies, resulting in a jungle of overhead lines in many of America's cities. Many bigger cities were served by numerous, rival operators.
In 1969, the FCC allowed the company named MCI, to provide a private line microwave connection between Chicago and St Louis. MCI consequently began to offer its service, which added up to direct competition with AT&T's monopoly over long distance offerings. In 1974, the Department of Justice brought an antitrust court case against AT&T, asserting that it had dishonored federal laws by using its power over local telephone networks to suppress competition in long distance. After many pre-trial proposals, the case was settled in 1982 resulting in a chance for new players to come into the industry. Later, the Telecommunication Act of 1996 proved as a catalyst to the situation and from that instant, the telecommunication industry in United States is developing at a fast pace.
Current Trends in us telecommunications industry
Arrival of the new players in the telecommunication sector of US is currently witnessing an all round development in the industry whether it is from technical perspective or from economical viewpoint.
Economical Perspective Growth in us telecommunications industry
Due to cut throat competition in the industry, operators are cutting the cost of services hence they are providing the cheaper and the best services to the subscribers resulting in the generation of higher revenues. Moreover industry is also contributing to the GDP of US to a greater extent.
Technical Perspective Growth in us telecommunications industry
In the race of providing better services and in order to maintain the maximum market share, companies in the industry are spending a great part of the revenues in the research and development of telecommunications, thus benefiting it.
Most of the cities in United States are served by at least five different services providers. Industry is growing at a moderate rate and is promising to grow at much higher rate in the future.
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