The World’s Top 5 Telecommunications Companies
The world’s top ten telecommunications companies each have a market value of more than $50 billion. Servicing the world’s ever-growing telephone and wireless connection needs, the telecommunications industry is forecast to continue to expand operations on a global level. More individuals in emerging markets are signing up for telephone and Internet contracts, while new telecommunications technologies in developed nations are expanding pre-existing customer bases of providers. While several company attributes can distinguish the top telecommunications companies in the world, market value serves as the determining factor that arranges this list of the top ten telecommunications companies.
1) China Mobile Ltd.
Serving China as the leading provider of telecommunications services by number of subscribers with approximately 849 million customers, China Mobile Ltd. (NYSE: CHL) is the top telecommunications company in the world. It has a market value of $215.3 billion as of April 2017, and between January and December 2016 its customer base grew by 2.5%.
2) Verizon Communications Inc.
Verizon Communications, Inc. (NYSE: VZ) is the largest telecommunications company in the United States. Its market value is estimated at $191.72 billion as of April 2017, and its sales weigh in at $131.8 billion (according to Forbes). Formed in 2000 with headquarters in New York City, Verizon came about as a result of the merger between Bell Atlantic Corp and GTE Corp. In 2015, Verizon completed its acquisition of AOL. The sale came after a 2014 purchase by Verizon of Vodafone’s 45% interest stake in Verizon stock. Verizon currently operates in 150 countries.
3) AT&T Inc.
AT&T Inc. (NYSE: T) is the second-largest telecommunications company in the United States with a market value of $245.58 billion. AT&T provides voice services in more than 200 countries and operates more than 34,000 Wi-Fi hotspots. According to its website, AT&T covers more than 355 million people. It expanded its AT&T GigaPower, an ultra-fast Internet service, to 56 metropolitan locations in the United States, with plans for further expansion. In 2006, AT&T acquired BellSouth. It purchased DirecTV in May 2014 for $48.5 billion, which allowed the company to offer customers the option to bundle more services into the same package.
4) Vodafone Group plc
Vodafone Group plc’s (NASDAQ: VOD) headquarters are in the United Kingdom, and the company services around 444 million mobile customers. Vodafone’s market value is $68.41 billion as of April 2016. From 2012 to 2014, Vodafone acquired three companies: Cable & Wireless Worldwide, Kabel Deutschland, and Ono. The company’s Standard & Poor’s long-term credit rating is A-. Mobile in-bundle sales account for 42% of Vodafone’s group service revenue, while 27% of revenue comes from mobile out-of-bundle sales. Vodafone is the most valuable brand in the United Kingdom and hosts mobile operations in 26 countries.
5) Nippon Telegraph & Telephone Corporation
Founded in Japan where fast Internet connections are plentiful, Nippon Telegraph & Telephone Corporation (NYSE: NTT) has a market value of $86.13 billion as of April 2017. Fiber connections are highly valued in Japan, and Japanese companies are known to spend heavily to attain the newest Internet technology. This environment has helped boost Nippon Telegraph & Telephone Corporation’s prevalence. Unlike other telecommunications companies, Nippon derives much of its business from fiber Internet connections rather than bundle packages. Increasingly, the company is looking to sales of its cloud computing services to expand its customer base.
