B2C Market: Market Sizing and Analysis Telecommunication services sector is the B2C market chosen for this assignment. According to the World Trade Organization, telecommunication services represent a huge global market contributing over $1.5 trillion in revenue. Off this total revenue, mobile services account for 40 percent; and as a result of increased competition pressures, the telecommunication services have undergone tremendous changes over the past decade (ibid). Evidently, this B2C market offers a range of services to consumers. Business network, support services, and teleconferencing are some of the major telecommunication services (Goswami et al p. 9).
And “enhanced telecommunication services include a wide range of services that add value to otherwise basic transmission of voice and data over telecommunication networks” (The U. S International Trade Commission 1995, p. 5-1). In simple words, this B2C service sector provides other services like broadband internet, mobile internet, mobile phone services, and cable and satellite television. Reports indicate that the global telecommunication services market contracted by 0.2 percent and reached a value of $1,217.8 billion; and this market sector is predicted to grow 13.6% by 2014 to reach a value of $1.382.2 billion (MarketWire 2011).
This report indicates that the demand for telecommunication services is likely to grow over the next years. In terms of value, the United States holds a significant share of the global telecommunication services market. It is identified that the threat of competitive rivalry is very high in this market sector due to technological innovations and entry of new service providers. Vodafone, AT&T, Verizon, Orange, China Mobile, and Telecom Italia are some of the major market players in the telecommunication services sector.
Currently, America owns a 34.3% share of the global telecommunication services market value (ibid). Political and technological environments greatly support this sector. Since telecommunication sector is a market representing a nation’s level of technological advancements, politicians are very interested to promote its development. In addition, technological innovations like satellite broadcasting and wireless internet significantly enhance the growth of this sector. Evidences suggest that this market sector noticeably contributes to the overall development of an economy. As discussed already, telecom services market has a greater growth potential because communication needs of people are getting higher.
According to a report, the global telecommunication services market is expected to achieve a volume of 4.9 billion subscribers by the end of 2014 (MarketWire 2011). As market analysts point out, growing customer expectations and needs contribute to the growth potential of this market sector. Since telecommunication is a key part of the modern life, people are attracted towards more convenient, efficient, and cost-effective telecommunication facilities. Therefore, this market sector may gain competitive advantages if it can better serve customers’ telecommunication needs and expectations in a more economic way.
In most of the countries, telecommunication services market is strictly controlled by the national government in the context of growing threats of terrorism and cyber crimes. In spite of this regulative legal environment, the number of buyers (subscribers) is still growing in this particular market segment. References Goswami, et al. (2011) Exporting Services: A Developing Country Perspective. World Bank Publications. MarketWire. (2011) ‘Telecom Services Market to Reach $1.4 Trillion by 2014’. [online] available at [accessed 18 March 2013]. U. S International Trade Commission.
(1995) General Agreement on Trade in Services: Examination of Major Trading Partners Schedules of Commitments. DIANE Publishing World Trade Organization. (n. d.) Telecommunications services. [online] available at [accessed 18 March 2013].