 Telecommunications
 Related
Profiles of
Professionals
Industry
Overview
The telecommunications industry is at the forefront of the information
age -- delivering voice, data, graphics and video at ever increasing
speeds and in an increasing number of ways. Whereas wireline telephone
communication was once the primary service of the industry, wireless
communication services and cable and satellite program distribution make
up an increasing share of the industry.
 During
the late 1990s, the telecommunications industry, experienced very rapid
growth and massive investment in transmission capacity. Eventually this
caused supply to significantly exceed demand, resulting in much lower
prices for transmission capacity. The excess capacity and additional
competition led to either declining revenues or slowing revenue growth,
which has led to consolidation within the industry, as many companies
merged or left the industry.
The largest sector of
the telecommunications industry continues to be made up of wired
telecommunications carriers. Establishments in this sector mainly
provide telephone service via wires and cables that connect customers'
premises to central offices maintained by telecommunications companies.
The central offices contain switching equipment that routes content to
its final destination or to another switching center that determines the
most efficient route for the content to take. While voice used to be the
main type of data transmitted over the wires, wired telecommunications
service now includes the transmission of all types of graphic, video,
and electronic data mainly over the Internet.
 These
new services have been made possible through the use of digital
technologies that provide much more efficient use of the
telecommunications networks. One major technology breaks digital signals
into packets during transmission. Networks of computerized switching
equipment, called packet switched networks, route the packets. Packets
may take separate paths to their destination and may share the paths
with packets from other users. At the destination, the packets are
reassembled, and the transmission is complete. Because packet switching
considers alternate routes, and allows multiple transmissions to share
the same route, it results in a more efficient use of telecommunications
capacity as packets are routed along less congested routes.
The transmission of
voice signals requires relatively small amounts of capacity on
telecommunications networks. By contrast, the transmission of data,
video, and graphics requires much higher capacity. This transmission
capacity is referred to as bandwidth. As the demand increases for
high-capacity transmissions -- especially with the rising volume of
Internet data -- telecommunications companies have been expanding and
upgrading their networks to increase the amount of available bandwidth.
One way wired carriers
are expanding their bandwidth is by replacing copper wires with fiber
optic cable. Fiber optic cable, which transmits light signals along
glass strands, permits faster, higher capacity transmissions than
traditional copper wirelines. In some areas, carriers are extending
fiber optic cable to residential customers, enabling them to offer cable
television, video-on-demand, high-speed Internet, and conventional
telephone communications over a single line. However, the high cost of
extending fiber to homes has slowed deployment. In most areas, wired
carriers are instead leveraging existing copper lines that connect most
residential customers with a central office, to provide digital
subscriber lines (DSL) Internet service. Technologies in development
will further boost the speeds available through a DSL connection.
 Wireless
telecommunications carriers, many of which are subsidiaries of the wired
carriers, transmit voice, graphics, data, and Internet access through
the transmission of signals over networks of radio towers. The signal is
transmitted through an antenna into the wireline network. Other wireless
services include beeper and paging services. Because wireless devices
require no wireline connection, they are popular with customers who need
to communicate as they travel, residents of areas with inadequate
wireline service, and those who simply desire the convenience of
portable communications. Increasing numbers of consumers are choosing to
replace their home landlines with wireless phones.
Wireless
telecommunications carriers are deploying several new technologies to
allow faster data transmission and better Internet access that should
make them competitive with wireline carriers. One technology is called
third generation (3G) wireless access. With this technology, wireless
carriers plan to sell music, videos, and other exclusive content that
can be downloaded and played on phones designed for 3G technology.
Wireless carriers are developing the next generation of technologies
that will surpass 3G with even faster data transmission. Another
technology is called "fixed wireless service," which involves connecting
the telephone and/or Internet wiring system in a home or business to an
antenna, instead of a telephone line. The replacement of landlines with
cellular service should become increasingly common because advances in
wireless systems will provide data transmission speeds comparable to
broadband landline systems.
 Cable
and other program distribution is another sector of the
telecommunications industry. Establishments in this sector provide
television and other services on a subscription or fee basis. These
establishments do not include cable networks. Distributors of pay
television services transmit programming through two basic types of
systems. Cable systems transmit programs over fiber optic and coaxial
cables. Direct broadcasting satellite (DBS) operators constitute a
growing segment of the pay television industry. DBS operators transmit
programming from orbiting satellites to customers' receivers, known as
minidishes.
Establishments in the
cable and other program distribution industry generate revenue through
subscriptions, special service fees -- primarily installation -- and
advertising sales. They also charge fees for services, such as the
transmission of specialty pay-per-view or video-on-demand programs;
these often are popular movies or sporting events.
Some cable and
satellite systems facilitate the transmission of digital television
signals. Digital signals consist of simple electronic code that can
carry more information than conventional television signals. Digital
transmission creates higher resolution television images and improved
sound quality. It also allows the transmission of a variety of other
information. Digital television also uses compression technology to
expand the number of channels.
 Changes
in technology and regulation now allow cable television providers to
compete directly with telephone companies. An important change has been
the rapid increase in two-way communications capacity. Conventional pay
television services provided communications only from the distributor to
the customer. These services could not provide effective communications
from the customer back to other points in the system, due to signal
interference and the limited capacity of conventional cable systems. As
cable operators implement new technologies to reduce signal interference
and increase the capacity of their distribution systems by installing
fiber optic cables and improved data compression, some pay television
systems now offer two-way telecommunications services, such as
video-on-demand and high-speed Internet access. Cable companies are also
increasing their share of the telephone communications market both
through their network of conventional phone lines in some areas and
their growing ability to use high-speed Internet access to provide VoIP
(voice over Internet protocol).
VoIP is sometimes
called Internet telephony, because it uses the Internet to transmit
phone calls. While conventional phone networks use packet switching to
break up a call onto multiple shared lines between central offices, VoIP
extends this process to the phone. A VoIP phone will break the
conversation into digital packets and transmit those packets over a
high-speed Internet connection. Cable companies are using the technology
to offer phone services without building a conventional phone network.
Wireline providers' high-speed Internet connections also can be used for
VoIP and cellular phones are being developed that use VoIP to make calls
using local wireless Internet connections. All of the major sectors of
the telecommunications industry are or will increasingly use VoIP.
Resellers of
telecommunications services are another sector of the telecommunications
industry. These resellers lease transmission facilities, such as
telephone lines or space on a satellite, from existing
telecommunications networks, and then resell the service to other
customers. Other sectors in the industry include message communications
services, such as e-mail and facsimile services, satellite
telecommunications, and operators of other communication services,
ranging from radar stations to radio networks used by taxicab companies.
Working
Environment
 The
telecommunications industry offers steady, year-round employment.
Overtime sometimes is required, especially during emergencies such as
floods or hurricanes when employees may need to report to work with
little notice.
Most other
telecommunications managers, administrative workers, and professionals
work 40-hour weeks in comfortable offices. Customer service
representatives may work in call centers where they answer customer
service calls -- many during evening and weekend hours.
Employment
Seventeen percent of
the industry's employees are professional workers. Many of these are
scientific and technical personnel such as engineers and computer
specialists. engineers plan cable and microwave routes, central office
and PBX equipment installations, and the expansion of existing
structures, and solve other engineering problems. Some engineers also
engage in research and development of new equipment. Many specialize in
telecommunications design or voice, video, or data communications
systems, and integrate communications equipment with computer networks.
Others research, design, and develop gas lasers and related equipment
needed to send messages through fiber optic cables. They study the
limitations and uses of lasers and fiber optics; find new applications
for them; and oversee the building, testing, and operations of the new
applications. They work closely with clients, who may not understand
sophisticated communications systems, and design systems that meet their
customers' needs.
Computer software
engineers and network systems and data communications analysts design,
develop, test, and debug software products. These include
computer-assisted engineering programs for schematic cabling projects;
modeling programs for cellular and satellite systems; and programs for
telephone options, such as voice mail, e-mail, and call waiting.
Telecommunications specialists coordinate the installation of these
systems and may provide follow-up maintenance and training. In addition,
the industry employs many other managerial, business and financial,
professional, and technical workers, such as accountants and auditors;
human resources, training, and labor relations managers; engineering
technicians; and computer programmers.
Industry
Forecast
Employment in the telecommunications industry is expected to decline 7
percent over the 2004-14 period, compared with 14 percent growth for all
industries combined. Industry consolidation and strong price competition
among telecommunications firms will decrease employment as companies try
to reduce their costs. Additionally, technological improvements, such as
high-speed wireless data transmission, fiber optic lines, and advanced
switching equipment, have massively increased the data transmission
capacity of telecommunications networks, and resulted in much higher
productivity that will further reduce employment. Telecommunications
equipment also is more reliable and requires less monitoring. In spite
of the declining employment, a growing number of retirements and need
for skilled workers will create good job opportunities for individuals
with up-to-date technical skills.
 The
industry will continue to grow despite the lower employment as people
and businesses will demand ever wider ranges of telecommunications
services. The growth of high-speed Internet and video services will lead
to continued upgrades of telecommunications networks. Residential
customers will use an increasing range of services as technology and
competition lower the price of high-speed Internet access,
video-on-demand, and wireless and Internet-based telephone services.
Cable companies and telephone companies will both offer cable
television, high-speed Internet, and phone services. Wireless carriers
will compete directly with the residential wired services, providing
increasingly reliable cellular communications and increasingly faster
Internet service. Therefore, the lines between cable and satellite TV,
wireless, and wireline telephone systems will become blurred.
Business demand will
rise as companies increasingly rely on their telecommunications systems
to conduct electronic commerce, ordering, record keeping, and video
conferencing. In order to remain competitive, businesses will require
higher speed access to the Internet.
Technology is
continuing to transform the industry and will continue to bring on line
a wider array of services to homes and businesses. The installation and
upgrading of fiber optic networks will bring ever-faster communications
to residential customers' homes. Internet telephony will blur the
boundaries between telecommunications providers and Internet service
providers. Wireless providers will continue to increase the capacity of
their radio networks and introduce improved portable, lightweight
devices capable of transmitting voice, data, email, Internet access, and
video. New phones will blur boundaries between phones and computers.
Some wireless phones will not only function on traditional wireless
networks, but also will use VoIP technology to make phone calls through
local wireless Internet networks. Undersea cables and orbiting
satellites are integrating wireline and wireless customers into a global
system of high-speed communications.
Employment growth will
differ among the various occupations in the telecommunications industry,
largely as a result of technological change. Employment of
communications equipment operators is expected to decline due to
increasing automation. Computer voice recognition technology lessens the
need for central office operators, as customers can obtain help with
long-distance calls from automated systems. This technology, which also
enables callers to request numbers from a computer instead of a person,
is expected to reduce the number of directory assistance operators. The
numbers of these workers will drop further as more customers use
automated directory assistance resources on the Internet.
 Employment
of line installers and repairers is expected to decrease due to more
reliable equipment and expanding applications of wireless technology.
Employment of telecommunications equipment installers and repairers is
expected to decline because newer, more reliable technologies will
reduce the need for equipment maintenance. Employment of these workers
also will be limited by the tendency of many companies to contract out
maintenance and installation work to specialized contractors that are
part of the construction or retail industries. However, there still will
be many openings available for individuals with the necessary technical
skills.
Employment of
electrical and electronics engineers and computer professionals is
expected to change only slightly. The expansion of communications
networks, and the need for telecommunications providers to invest in
research and development, will create some job opportunities for these
workers. However, the increasing standardization of telecommunications
technology will limit their employment.
Related
Degree Fields
Professional
Associations
Note: Some resources in this section are provided by the US Department
of Labor, Bureau of Labor Statistics.
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