The world has huge telecommunications and wireless connection needs, and with the increasing influence and growth of mobile, the telecommunications industry is forecast to continue growing at a tremendous pace. Furthermore, new telecommunications technologies are being developed in emerging countries, while developing nations expand the pre-existing markets and consumer bases. Competition is stiffest at the very top, though, and with each of the top ten companies valued at over $50 billion, the top ten will be interesting to watch.
Among the top telecom companies in the world in 2017, there have been some familiar faces and performance trends. Perhaps the most notable thing was the fact that China Mobile (News - Alert) topped the world ranks again, eclipsing the American Verizon. Further down the line, there were strong performances by some European giants, notably the Norwegian and Swedish Telenor, which came in strongly at fifth. Here is a breakdown of how the top ten performed last year.
At the very top of the world top ten, China leads the list driven by the sheer number of subscribers. In 2016 alone, the company widened its lead at the top of the log, with its market value growing by almost ten billion from that of the previous year, to settle at about $280 billion. With a revenue stream of about $52.7 billion during that time, and profits of $2.9 billion, the Chinese company, headquartered in Beijing is undoubtedly the biggest among telecom companies in the world.
Second on the list is Verizon (News - Alert), which after the takeover of AOL, valued at 4.4 billion, took the title of top telecoms company in the U.S. from AT&T. It now operates in over 15 countries and has over 100 million retail wireless connections in its kitty. As of 2015, the company’s market value stood at $202.5 billion, with the revenue weighing in at $131.6 billion.
Founded in 1994, this Belgian telecom company continues the trend of European companies dominating the telecommunications world. The company is headquartered in Brussels, with most of it owned by the Belgian government. During an important year, the company’s revenues dropped in 2015 to $1.59 billion, mostly because of divestments. The company’s profits stood at about $1.506 billion, a 2.2 percent growth in 2015 alone.
UK’s Vodafone enjoys the advantage of being one of the most recognizable brands in the world. The company has more than 440 million subscribers, and more than 100,000 employees. Based out of London, Great Britain, it has one of the widest reaches internationally, operating in up to 150 countries. The company is valued at about $88 billion, and in 2016, posted profits of about $2 billion and about $42.20 billion in revenue.
One of the truly exceptional Scandinavian companies, Telenor stands tall among other telecommunications service providers, both in the region and the world. As a company looking for a firm foothold in the world market, a seat at the big boys’ table, its rise has been phenomenal. It is one of the oldest companies in the telecommunications industry, having been in operations for more than 160 years. It was founded in 1855 in Norway, and now has about 38,000 employees. The company’s market capitalization, as of May 2016 was $24.6 billion, with sales of around $15.57 billion.
The Japanese Nippon Telegraph & Telephone (News - Alert) has also in the past few years been looking to establish itself as a global market leader. It is the biggest service provider from Japan, and enjoys an almost unconditional support from the government there. This has provided an atmosphere of stability in the company, one which saw it post revenues of $104.7 billion and profits of $5.2 billion in 2016. The company is valued at around $71.5 billion.
7) Swisscom AG
Founded in 1998, Swisscom is Switzerland’s contribution to the top echelons of the telecommunications world. With revenues of $11.44 billion in 2015, the company goes heads and toes with the best in the business. Its headquarters are at are located at Worblaufen, Switzerland, and majority of it is owned by the Swiss Confederation.
Germany’s Deustche Telekom is another force to reckon with in the telecommunications industry. With over 151 million customers, it has around 30 million fixed network lines and more than half of that in broadband lines. True to the German traditions of efficiency, the company provides a wide variety of services such as fixed network, broadband, ICT solutions, internet and IPTV (News - Alert). It has a presence in over 50 countries, with more than 220,000 employees. Deustche Telekom has a market value of about $85 billion, and recorded profits of about $3.6 billion in 2016. The company’s revenue stood at about $77.29 billion. It has always been a company of firsts. It was the first to present a phone with the new Firefox OS, and in 2015, launched a standardized European network.
Now operating in 21 countries, the company has customers with over 341 million connections. It operates in Europe and parts of Latin America and is 100 percent listed, with over 1.5 million shareholders. With a revenue stream of 56.55 billion $, a profit of $3.29 billion in 2016 and a $72.3 billion market value in 2015, the Spanish company is one of the biggest in the business today.
Originally a government department, Telstra (News - Alert) is now the biggest telecoms company in Australia. It offers a full range of telecommunication services to subscribers across the country, and reaches almost every household with basic services, including local and long distance telephone call services. It also provides wholesale ISP and RSP services, as well as television advertising and subscription services. In Australia alone, the company serves about 16.9 million mobile service users; offers fixed broadband services to 3.3 million users and fixed voice services to 7.2 million connections. It had revenue of $19.83 billion and $4.24 billion in profits in 2016.
In A Nutshell
As the ease of communication is becoming a huge part of the new collaborative world order, this particular initiative is being driven mainly by technological advancements and a tendency towards globalization. At the center of this are the above stated biggest telecommunications agencies in the world. Please let us know your views on this in the below comments section.
Edited by Alicia Young