Industry Analysis & Industry Trends
This industry contrasts with the rest of the telecommunication sector because its operators do not own any infrastructure. Instead, it is an alternative distribution channel for telephony and data transfer. Resellers pay carriers to access their networks in order to deliver various telecommunication services for consumers and businesses. The benefit for carriers is that they sell a large book of business at a relatively low cost, which means wholesale margins tend to be greater than would be achieved in servicing the low-end markets that resellers tend to target. The ease of access provided by this wholesale model has allowed for so much competition to develop within the UK market that it has now become saturated... purchase to read more
Industry Report - Starting a New Business Chapter
The Telecommunications Resellers industry has the lowest barriers to entry within the telecommunications sector. Relative to telecommunication carriers, capital intensity is considerably less as telecommunication resellers by definition utilise infrastructure belonging to third parties (i.e. the carriers). However, switched telecommunication resellers are still required to invest in various switching mechanisms, though it is possible to be a switchless reseller and hence avoid this cost. The move to IP-based networks has reduced switching costs for both carriers and resellers.
Possibly the greatest barrier to entry that is evident today is the intense level of competition that exists within the telecommunications sector as a whole... purchase to read more