The World's Top 10 Telecommunications Companies

The world’s top 10 telecommunications companies each have a market value of over $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 10 telecommunications companies.

1) China Mobile Ltd.

Serving China as the leading provider of telecommunications services by number of subscribers, China Mobile Ltd. (NYSE: CHL) is the top telecommunications company in the world. With a market value of $280 billion, China Mobile experienced a 22.3% revenue increase in its data services between 2013 and 2014. Sales of non-telecommunications products were also robust during the same time frame with an increase from 39 million RMB to 59 million RMB. Company efforts to make China Mobile’s marketing budget more cost effective helped to reduce selling expenses by 17.5%.

2) Verizon Communications Inc.

Verizon Communications Inc. (NYSE: VZ) is the largest telecommunications company in the United States. Its 2015 market value was estimated at $202.5 billion, and its sales weigh in at $127.1 billion. 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. To date, Verizon has 110.8 million wireless retail connections and 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 $173 billion. AT&T provides voice services in over 225 countries and operates over 34,000 Wi-Fi hotspots. AT&T serves over 110 million wireless subscribers. 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 446 million mobile customers. Vodafone’s market value is $88 billion. 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 $71.5 billion. 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.

6) Softbank Group Corp.

Softbank Group Corp. started in 1981 as a packaged software distributor and has since created a domestic telecommunications segment that services Japan’s mobile communication, device and broadband needs. The company’s market value is $70.3 billion. Softbank owns an 80% stake in U.S. phone services provider Sprint in addition to managing Yahoo! Japan. In 2015, Softbank purchased IBM’s licensing for its robot "Watson" to create a Japanese android called "Pepper," with plans to sell the robot to retail customers. Softbank announced the robot can read human emotions. The first 1,000 units of Pepper robots sold out in November 2015.

7) Deutsche Telekom AG

Deutsche Telekom AG services 151 million mobile customers with a presence in over 50 countries and 228,000 employees. The German company has a market value of $85 billion, and more than half of its revenue is generated outside of Germany. Telekom seeks to build efficient networks that meet future broadband needs. The company’s third quarter 2015 report announced that net profits were up almost 60%, while revenue was up by 9.3%. In 2013, Telekom became the first telecommunications company to present a smartphone with the Firefox OS. In 2015, the company launched a standardized European network, implementing three of 10 countries in a cross-border infrastructure development.

8) Telefonica S.A.

Telefonica S.A. (NYSE: TEF) originates from Spain and serves 325 million customers, with its customer base that is largely concentrated in Latin America. Telefonica’s market value is $72.3 billion. Its products and services include cloud computing, mobility services, data centers, enterprise voice and security services. Telefonica markets three brands with different target audiences. Movistar serves Spain and Latin America; O2 serves the United Kingdom, Ireland, Germany, the Czech Republic and Slovakia; and VIVO serves Brazil. Over the past two years, Telefonica has focused on investment as a means of expanding business. The company acquired e-Plus, GVT and Digital+.

9) America Movil

As of December 2015, Mexican company America Movil (NASDAQ: AMOV) serves 72,633 wireless subscribers, boasts a wireless market share of 68% and provides services to 289 million mobile customers. Total coverage of America Movil’s mobile, fixed lines, broadband and television services reaches 892 million customers worldwide. With a market value of $74.5 billion, the company’s access lines business increased by 1.4% over a one-year period by the second quarter of 2015. In July 2015, America Movil launched its eighth satellite, Star One C4, at the Kourou Space Center in French Guiana.

10) China Telecom

China Telecom is a state-owned company that provides fixed-line telephone services to 194 million customers. Its mobile services reach 62.36 million and broadband reaches 61.75 million. The company’s market value is $53.9 billion, and company headquarters are located in Beijing. Holding company China Telecom Corporation Limited (NYSE: CHA) experienced a public offering in 2002 in Hong Kong and New York City. China Telecom’s second holding company, China Communications Services Corporation Limited, launched its Hong Kong IPO in 2006. China Telecom’s commercial brands include E-surfing, E-surfing Navigator, E-surfing E Home and E-surfing Flying Young.