The telecommunications industry continues to experience massive growth and change, driven by new technologies, rising demand for data services, and increasing competition. This article profiles the 10 largest telecom companies in the world as measured by annual revenue and analyzes the key factors impacting their success.
1. AT&T
Revenue (2021): $168.9 billion
HQ: Dallas, Texas, USA
The largest telecommunications company in the world, AT&T has over 100 million mobile subscribers and is the third biggest mobile provider in the U.S. While AT&T has a large fixed-line telephone and broadband business, mobile, video, and business services drive the majority of revenues. The company has invested heavily in 5G and fiber network infrastructure to better compete with Verizon in next generation wireless and broadband. Beyond consumer mobile, AT&T is focused on emerging technologies like IoT and autonomous vehicles. The pending merger of its WarnerMedia unit with Discovery indicates a desire to focus more narrowly on its core connectivity businesses.
2. Verizon Communications
Revenue (2021): $133.6 billion
HQ: New York City, New York, USA
Verizon is neck and neck with AT&T as the largest U.S. telecom provider while also offering mobile and fixed services in Europe and the Asia-Pacific region. In addition to wireless, video, and broadband for consumers, Verizon Business delivers advanced networking, security, and cloud solutions to enterprise clients worldwide. With over 120 million mobile subscribers, Verizon has prioritized upgrading its 4G LTE network while ramping up 5G deployment for enhanced mobile broadband to more consumers and businesses. The company also acquired preeminent fiber service provider Frontier in 2021 to complement its 5G push.
3. China Mobile
Revenue (2021): $107.8 billion
HQ: Beijing, China
The largest mobile carrier in China, China Mobile has over 950 million mobile subscribers across 30 provinces and countries. As a state-owned enterprise, China Mobile benefits from government protection and subsidies to maintain the quality and reach of its service. China Mobile is deploying 5G networks to enhance connectivity as mobile penetration nears saturation. While challenged to diversify given competition and heavy regulation, China Mobile has launched popular standalone apps and is targeting opportunities in fintech, IoT, cloud, and big data that leverage its massive subscriber base.
4. Deutsche Telekom
Revenue (2021): $108.8 billion
HQ: Bonn, Germany
Deutsche Telekom is the largest telecom company in Europe with strong positions in its home country of Germany as well as mobile and fixed operations across the Eurozone. As a telecom leader in areas like network technology and infrastructure, Deutsche Telekom is Europe‘s innovation engine for 5G, fiber broadband, the cloud, and more. The company is combining its mobile and fixed-line units across multiple countries under the unified Magenta brand to provide integrated connectivity and digital life services. With ownership stakes in innovators like software company T-Systems and mobile payments platform Square, Deutsche Telekom is positioning itself for the future.
5. Nippon Telegraph and Telephone (NTT)
Revenue (2021): $106 billion
HQ: Tokyo, Japan
Japan‘s NTT looms large as Asia‘s major telecom conglomerate covering both mobile and fixed services. As the nation‘s premiere fixed line provider, NTT operates hybrid fiber coaxial networks enabling gigabit broadband speeds to consumers and businesses. Due to government protection, NTT has dominated Japan‘s telecom scene for decades. But with deregulation, the company now faces fresh competition, particularly in mobile from SoftBank Corp and Rakuten. While impacted by its legacy landline business, NTT is revitalizing its mobile unit, preparing for 6G research, and acquiring capabilities in fields like smart cities and autonomous driving to ensure future success.
6. China Telecommunications Corp
Revenue (2021): $54 billion
HQ: Beijing, China
China Telecom is the country‘s third largest wireless carrier behind China Mobile and China Unicom. Though it has over 300 million mobile subscribers, China Telecom still earns most revenues from fixed services like broadband – reflecting its heritage prior to competitive reforms in 2008. As a more innovative alternative to dominant China Mobile, China Telecom is building premium 5G networks in top cities and aggressively promoting 5G applications for consumers and industries. The company is also expanding IoT platforms and cloud services enabled by its network assets and expertise. Despite ban from US exchanges over data privacy concerns, China Telecom continues steady advancement.
7. Vodafone
Revenue (2021): $52.7 billion
HQ: London, United Kingdom
Serving over 300 million mobile customers and 22 million fixed broadband subscribers globally, Vodafone is second only to China Mobile in terms of overall subscriber count. Though its footprint extends across Europe, Africa, and Asia, Vodafone punches below its weight in terms of revenues due to operations in lower income regions. Intense competition has also made leading European markets like Germany and Italy challenging. Under a new CEO, Vodafone has doubled down on upgrading networks for 5G while reinventing itself as a "techco" – expanding IoT platforms and developing alternative data-driven revenue streams in areas like financial services and digital health.
8. Orange
Revenue (2021): $47.5 billion
HQ: Paris, France
Multinational telecom firm Orange provides mobile, broadband, TV, and other communications services to 274 million customers globally – 81 million of which are fiber broadband subscribers. With headquarters in Paris and the bulk of revenues derived from Europe, Orange has prioritized investments in fiber and 5G to defend its stronghold in France while consolidating operations in Spain and other European regions. The company is also expanding presence in Africa and the Middle East where growth rates are higher compared to its sluggish European markets. Orange‘s success is further underpinned by its cyberdefense unit and moves into areas like cloud computing and financial services in Africa.
9. América Móvil
Revenue (2021): $41.4 billion
HQ: Mexico City, Mexico
Latin America‘s largest telecom firm, América Móvil serves over 277 million wireless subscribers in 25 countries. The company‘s Mexican billionaire owner Carlos Slim Helú has built an empire across Latin America by acquiring incumbent operators privatized in the 1990s and 2000s. While still reliant on voice, América Móvil has upgraded networks from 3G and 4G to 5G to expand connectivity and data service capabilities. The company is also harmonizing operations under its Claro brand throughout Latin America – enabling seamless service delivery across different countries. América Móvil is finally making concrete moves beyond traditional telecom into areas like IoT, cloud services, and mobile payments to unlock new revenue streams.
10. Telefónica
Revenue (2021): $39 billion
HQ: Madrid, Spain
Rounding out the top 10 is Spanish telecom incumbent Telefónica – which serves 350 million customers globally. Telefónica spent the past decade shedding unwanted assets outside core Europe and Latin American markets to reduce debt. As part of this back to basics approach, the company has focused intensely on enhancing both fixed and mobile networks. Telefónica tech subsidiary Telxius has emerged as one of the world‘s largest telecom infrastructure providers owning 61,000 mobile towers and over 100,000 km of submarine fiber optic cable globally. Telefónica aims to reinvent itself as a "digital telco" providing security, IoT, cloud, and big data in addition to connectivity.
While each company in the top 10 has strengths and weaknesses, there are common patterns across the world‘s telecom elite:
Government support: Incumbent state-owned operators like China Mobile, China Telecom and Deutsche Telekom benefit from government protection and preferential access to 5G spectrum that newcomers lack. NTT and Orange also enjoy solid regulatory backing in their respective countries. This enables them to invest steadily without fear of disruptive competition.
Network superiority: Continuous infrastructure upgrades and technology leadership in areas like 5G underpin premium network quality and customer perceptions. Verizon, China Mobile, Deutsche Telekom and others leverage cutting edge networks to charge more and earn customer loyalty.
Enterprise services: While consumer mobile remains important, globally diversified telcos increasingly cater to steady enterprise demand for managed networking, cloud, IoT, cybersecurity and emerging technologies. AT&T, Verizon, Orange and NTT in particular have honed strengths in serving corporate customers.
Integrated business models: Converging mobile and fixed services allows providers like Deutsche Telekom to offer quad play bundles (fixed voice, broadband, video, and mobile) that maximize revenues per customer. Cross-selling multiple offerings also increases switching costs for better retention.
New services: Leaders like AT&T and Telefónica understand the limitations of pure “connectivity” models given market maturity and regulation. They smartly establish alternative revenues in adjacent spaces like media, financial services, IoT platforms, and cloud.
Operations optimization: As Vodafone and Telefónica demonstrate, disciplined cost management and shedding underperforming assets provides resources to plow into promising growth domains and next generation infrastructure vital for long term positioning.
Despite the strengths of the world‘s top 10 telecom brands, complacency isn‘t an option given shifting consumer behaviors, new technologies, and competition from outside the traditional value chain. Key trends challenging telecom‘s old guard include:
Cord cutting: As consumers ditch cable TV for on-demand streaming options, video revenue – once a cash cow – is fading. AT&T‘s breakup with WarnerMedia underscores this reality. Providers like Orange and Telefónica also feel the pinch as cheaper over-the-top (OTT) offerings proliferate.
Commoditization: In maturing mobile markets like Europe, cutthroat competition around mostly undifferentiated data and voice service sees prices and margins plummet. Vodafone and other struggle with this grim reality.
Overbuilding cable: Fueled by demand for higher broadband speeds, cable operators like Comcast and Liberty Global are dismantling the coaxial cable paradigms dominating internet access for decades. With upgraded DOCSIS 3.1 and fiber-rich HFC networks enabling gigabit speeds at lower costs, cable firms undermine legacy DSL providers.
Satellite disruption: Following SpaceX‘s lead, visionary startups planning “megaconstellations” of low earth orbit satellites to deliver broadband and other services threaten terrestrial telecoms worldwide. Satellite TV faces similar upheaval.
New competitors: Firms from outside telecom like Amazon, Google and Microsoft leverage cloud infrastructure and relationships with enterprises worldwide. By offering on-demand network connectivity and communications, cloud leaders disrupt network-based business models.
Emerging innovation: Software-based advances like OpenRAN and virtualization erode hardware-centric telecom. Such trends allow firms like Rakuten and DISH to construct advanced networks at radically lower costs compared to legacy infrastructure approaches.
Collectively, these influences drastically alter the telecom competitive landscape – making new skills and business models imperative for continued success.
Amidst such churn, decisive management is vital for telecom companies to flourish rather than flounder. Here are the most critical moves industry titans must make to stay ahead of disruption:
Fiber investment: Transition remaining legacy copper networks to high capacity fiber underpins 5G deployments and defending fixed broadband subscriber bases against hungry cable rivals and emerging low earth orbit broadband constellations.
Enterprise 5G: Private 5G networks for factories, logistics hubs and similar sites offer telcos coveted growth opportunities in the enterprise 5G arena. AT&T and Verizon in particular are seizing this chance to support business digital transformations.
Global expansion: With saturated markets in Europe and the Americas, Africa and developing Asia offer new vistas for subscriber and revenue growth. Orange and Vodafone both see emerging markets as their best bet going forward.
Adjacent services: Doubling down on non-connectivity services like financial services, security, and cloud unlocks new income streams beyond stagnant mobile and fixed offerings. Telefónica providing cloud-based data analytics for clients demonstrates this thinking.
Start-up partnerships: Joining forces with small but promising startups gives incumbents valuable technology and skillsets. Verizon‘s alignment with Amazon on 5G edge computing for enterprises is a blueprint to emulate.
Aggressive streamlining: As América Móvil emphasizes, decisive cost optimization and shedding legacy baggage must run parallel to other forward-looking moves to boost profitability needed to fund cutting-edge networks and new ventures.
Unified platforms: Integrating historically separate mobile and fixed operations under one brand and back-end platform brings synergies and better customer experience critical for battling cable and cloud disruptors. Deutsche Telekom‘s integrated approach leads here.
As telecom enters a new period of convergence, competition and creativity, industry leaders must get comfortable with change and conscious strategic evolution vs. resting on traditional businesses. Those who embrace this transformation can own the future. Those who don‘t risk rapid decline. Exciting times ahead!
