In light of the announced SBC-AT&T merger, research firm TNS Telecoms released some figures highlighting the importance of the combination in light of the market share the company will hold in the wired-line telecom market. Here's the first part of the press release, which contains their main conclusions:
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A Combined SBC and AT&T Represents 28% of the Wired Line Telecom Market and 10% of Total Telecom Spending
JENKINTOWN, Penn.--(BUSINESS WIRE)--Jan. 31, 2005--As SBC Communications announces its intentions to acquire AT&T, the most recent market tracking data released by TNS Telecoms shows that a combined entity would control 28% of revenue in the consumer wired line telecom market. When examined separately, the 3rd Quarter 2004 data shows that SBC/AT&T would control 27% of the local telecom market households and 37% of the long distance telecom market households. Together the combined entity would represent 10% of all dollars spent on telecom services, not including revenue from Cingular Wireless.
SBC and AT&T would represent the nation's largest traditional telecom provider, but when wireless spending is included, the combined SBC/AT&T together with Cingular would represent 15% of total consumer communications spending, while Verizon and Verizon Wireless would represent 16% of the total. Cingular Wireless is a joint venture of SBC and BellSouth and Verizon Wireless is a joint venture of Verizon and Vodaphone.
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Following is a table which shows where the 28% figure comes from:
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Wired Line Share of Revenue (Share includes total spending on local,
IntraLATA and InterLATA long distance and local and LD integrated plan
spending)
Company......Share of......Change from Last
....................Revenue........Quarter
Verizon............22%...............1
SBC.................19%..............1
BellSouth..........11%..............0
AT&T.................9%...............0
Qwest................6%.............-1
MCI...................5%..............0
Sprint.................5%.............-1
Other................23%..............5
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AB -- 1/31/05
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