Telecommunications
Industry
Overview
The telecommunications industry delivers telephone, television,
Internet, and other services to customers throughout the United States.
Providing the primary means of communication to virtually all
businesses, households, and individuals, telecommunications firms supply
an essential service to the U.S. economy. In addition to offering
traditional services such as wired phone and cable TV,
telecommunications companies also offer services such as cellular phone,
broadband and mobile Internet, and satellite TV, among others.
Industry
Organization
The
telecommunications industry is divided into four main sectors: wired,
wireless, satellite, and other telecommunications establishments. The
largest sector of the telecommunications industry continues to be made
up of wired telecommunications carriers. Establishments in this sector
mainly provide telecommunications services such as such as wired
(landline) telephone, digital subscriber line (DSL) Internet, and cable
TV and Internet services. These organizations route TV, voice, Internet,
data, and other content over a network of wires and cables, and control
access to this content. They may own and maintain networks, share
networks with other organizations, or lease network capacity from other
companies. Establishments in the telecommunications industry, however,
do not create the content that is transmitted over their networks, such
as TV programs. Wired telecommunications also includes direct-to-home
satellite television distributors and a variety of other businesses.
Wireless
telecommunications carriers provide telephone, Internet, data, and other
services to customers through the transmission of signals over networks
of radio towers. The signals are transmitted through an antenna directly
to customers, who use devices, such as cell phones and mobile computers,
to receive, interpret, and send information. A large component of this
industry segment consists of companies that provide cellular phone
service, which has grown rapidly over the past decade. Another component
includes establishments that deliver mobile Internet services to
individuals with Internet-enabled cellular phones and computers.
Satellite
telecommunications establishments are made up mostly of government and
private organizations that transmit a variety of data through
satellites, including photos of the earth, messages to and from public
safety officials, and a variety of other information. Direct-to-home
satellite TV providers, however, are classified with wired
telecommunications.
Other sectors in the
telecommunications industry include telecommunications resellers, as
well as operators of other communication services ranging from radar
stations to radio networks used by taxicab companies.
Recent
Developments
Telecommunications
carriers are expanding their data transmission capabilities, known as
"bandwidth," by replacing copper wires with fiber optic cables. Fiber
optic cable, which transmits light signals along glass strands, permits
faster, higher capacity transmissions than traditional copper wire. In
some areas, carriers are extending fiber optic cable to residential
customers, enabling them to offer cable television, video-on-demand,
faster high-speed Internet, and conventional telephone communications
over a single line.
Wireless
telecommunications carriers are deploying several new technologies to
allow faster data transmission and better Internet access in an effort
to make them more competitive in a market that includes wired Internet
carriers. With faster connection speeds, wireless carriers can transmit
music, videos, applications, and other content that can be downloaded
and played on cellular phones, giving users mobile access to large
amounts of data. In addition, as use of this mobile technology
increases, wireless companies continue to develop the next generation of
technologies that will allow even faster data transmission
Working
Environment
Most
workers in the telecommunications industry worked 40 hours per week in
2008, but about 14 percent worked more than 50 hours, on average.
Workers in this industry are sometimes required to work overtime,
especially during emergencies such as floods or hurricanes when
employees may need to report to work with little notice to help restore
network connections. Most telecommunications managers, administrative
workers, and professionals work in clean, comfortable offices. Customer
service representatives often work in call centers where they answer
customer service calls, and may be required to work evening and weekend
hours
Employment
The telecommunications industry provided about 1.0 million wage and
salary jobs in 2008. Wired telecommunications carriers accounted for
about 666,100 of these jobs in 2008, while 202,700 were in wireless
telecommunications carriers. Telecommunications jobs are found in almost
every part of the country, but most employees work in cities that have
large concentrations of industrial and business establishments.
STEM Degree
Paths into this Industry
Nineteen percent of the industry's employees are professional and
related workers. (Many additional workers in these occupations are
employed at the headquarters or research facilities of
telecommunications companies, establishments that are classified in
other industries.) Engineers plan cable routes, equipment installations,
the expansion of existing structures, and solve other engineering
problems. Some engineers also engage in research and development of new
equipment. Many specialize in telecommunications design or voice, video,
or data communications systems, and integrate communications equipment
with computer networks. Others research, design, and develop gas lasers
and related equipment needed to send messages through fiber optic
cables. They study the limitations and uses of lasers and fiber optics;
find new applications for them; and oversee the building, testing, and
operations of the new applications. They work closely with clients who
may not understand sophisticated communications systems, and design
systems that meet their customers' needs.
Computer software
engineers and network systems and data communications analysts design,
develop, test, and debug computer software programs and computer
networks. These include computer-assisted engineering programs for
schematic cabling projects; modeling programs for cellular and satellite
systems; and programs for telephone options, such as voice mail, email,
and call waiting. Telecommunications specialists coordinate the
installation of these systems and may provide follow-up maintenance and
training.
Industry
Forecast
Despite
increasing demand for telecommunications services, employment in the
telecommunications industry is expected to decline. Job opportunities,
however, will arise from the need to replace a significant number of
workers who are expected to retire in the coming decade. With rapid
technological changes in telecommunications, those with up-to-date
technical skills will have the best job opportunities.
Employment in the
telecommunications industry is expected to decline by 9 percent over the
2008–18 period, compared with 11 percent growth for all industries
combined. Despite an increasing demand for wireless Internet, cable
television, and mobile technologies, productivity gains will result in a
reduced demand for workers. As telecommunications infrastructure becomes
more reliable, for example, fewer workers will be needed to make
repairs. Also, consolidation among organizations will lead to
productivity growth across many occupational groups, as combined
operations generally require fewer total workers.
Households will demand
more services such as wireless Internet, video-on-demand, and mobile-
and Internet-based telephone services. Businesses will demand faster and
more advanced telecommunications systems to improve communication and
electronic commerce. These services are being supplied increasingly by
all the competing sectors of the industry, as the lines become blurred
between cable and satellite TV, and between wireless and wired phone and
Internet systems. Employment, however, is projected to decline in both
the wired and wireless sectors.
Wireless companies
will continue to introduce new technologies and services and provide
faster Internet access. Employment, however, is expected to decline by 1
percent over the projection period. Demand will decrease for
installation, maintenance, and repair occupations as the rate of
expansion of the wireless infrastructure slows, because upgrading
existing equipment is less labor-intensive than installing new
equipment. Some occupations, however, will not see such declines. Demand
for customer service representatives will grow as these workers will be
needed to accommodate an increase in customers. In addition, computer
specialists will not see declines because these workers will be needed
to develop new technologies.
Employment
in wired telecommunications carriers is expected to decline by 11
percent. Fiber optic cables, which are more reliable than their
copper-wire counterparts, are expected to account for an increasing
portion of the wired infrastructure. This will result in fewer
installation, maintenance, and repair workers, as malfunctions occur
less frequently. Employment should decline in most other occupational
groups as well, as wired services, such as landline phones and cable
Internet, lose market share to their wireless counterparts.
Job openings are
expected to arise in the telecommunications industry as a result of the
growing number of retirements and the continuing need for skilled
workers. Prospects will be best for installation, maintenance, and
repair workers, many of whom are expected to retire in the coming years,
as well as for customer service representatives, who tend to have high
turnover, creating many openings. Opportunities in these occupations
will be best for applicants with 2-year or 4-year degrees, as well as
the necessary skills.
Related
Degree Fields
Professional
Associations
Note: Some resources in this section are provided by the US Department
of Labor, Bureau of Labor Statistics.
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