The cable & telecommunications sector is highly concentrated in terms of market share, and if T-Mobile and Sprint – two of the top players in the market – complete their proposed merger, it will consolidate even further. As such, staying current on the trends occurring for the biggest companies is critical for accounts receivable management (ARM) firms looking to do business in the cable & telecommunications space.
Kaulkin Ginsberg recently researched and compiled a report regarding cable & telecommunications in order to inform ARM companies either operating in the sector or interested in the sector of critical market-level trends and data on the largest players. Specifically, the report examines aggregate revenue and bad debt trends, relevant economic drivers, and regulatory actions, before concluding with in-depth analyses of the financial details – including accounts receivable and bad debt allowances – of the market leaders. These case studies are particularly aimed at supplying ARM executives and their sales teams with actionable data on potential clients.
As it stands, the cable & telecommunications sector is a massive market that generates hundreds of billions of dollars a year – in 2018, the sector generated an estimated $625.3 billion. However, the vast majority of that revenue is captured by just a few massive firms. The graph below illustrates sector revenue in 2018 by company:
Kaulkin Ginsberg estimates that in 2018, roughly 82% of the total cable & telecommunications sector is dominated by the top 5 firms. Furthermore, this concentration is set to intensify going forward. On July 26 of this year, the Department of Justice (DOJ) gave its approval for the proposed merger between T-Mobile and Sprint. If the deal is closed, competition in telecommunications specifically would lessen as the number of major wireless carriers would drop from four to three. In addition, the merger may inspire a wave of acquisitions by T-Mobile’s and Sprint’s competitors – such as AT&T and Verizon – in order to maintain market share.
As the sector consolidates, the top companies will service an increasing share of the overall potential customer base – meaning their share of delinquent customers will rise as well. Understanding revenue and receivables trends for the largest players is critical for ARM companies interested in entering or expanding their presence in the cable & telecommunications sector. Kaulkin Ginsberg’s market research team has compiled detailed case studies that can help ARM firms identify and target new potential clients.
To purchase the full report, or inquire about additional market sectors, please reach out to Kaulkin Ginsberg’s market research team at firstname.lastname@example.org.