Business review

Telecom Services in Vertical Markets 2006-2011, the ninth market analysis study in this series, quantifies the telecom spending habits of major US industry segments for wired and wireless services. This report examines wired and wireless spending trends in the general economy and then delves into wired voice and data service spending patterns and wireless spending for specific industry segments including: healthcare; construction; retail trade; wholesale trade; educational services; financial, insurance, and real estate services; professional business services; hotel and lodging; transportation; communications; utilities; entertainment and media; durable manufacturing; and non-durable manufacturing.

The objective of this market research report is to examine and quantify the opportunities in various vertical industries for the telecommunications service provider community. INSIGHT examines 14 vertical markets in this report, segmented according to Standard Industrial Classification (SIC) developed by the US Department of Commerce and the North American Industry Classification System (NAICS) developed by the Bureau of Labor Statistics (BLS). These 14 vertical markets represent the majority of establishments in the US. This study begins with total telecom revenues, divides them between the business and the residential markets, and then examines the driving forces in each of 14 selected vertical markets. The forecasts and segmentation in this report are based on data from the US Bureau of the Census, the BLS, the Bureau of Economic Analysis, the Federal Communications Commission (FCC), Standard & Poor's (S&P), and a private study that was conducted on 500,000 business sites completed in the third quarter of 2006.

As competition drives down margins, solution selling into vertical markets enables real competitive differentiation, and allows increasingly sustainable profit margins. Vertical marketing opens new doors,taps niche markets, and builds customer loyalty. When telecom providers focus on vertical market solutions, they move away from the commodity voice sale and toward higher-margin, value-added services.

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