# Telecommunications: Value chain, from upstream to the customer

Mobile, fibre, subsea cable and satellite operators carrying voice and data

Source page: https://www.materialinsights.org/industries/telecom/value-chain/

#### Value chain, from upstream to the customer
**Criticality to the chain:** 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 **Spectrum, rules and standardsSpectrum regulators and licensing authorities**5 · Chokepoint

Auction or assign radio spectrum, license operators, set tariffs and quality rules and manage numbering and rights of way.^[4](https://www.trai.gov.in/sites/default/files/2026-07/PR_No104of2026_0.pdf)
**Why chokepoint:** Each country has one spectrum authority and no mobile network can operate without its licence, so auction prices and rules shape the whole industry's economics. Technologies Spectrum auctions and assignment Interference management Numbering and interconnection rules Licence fee and revenue-share regimes Depends on Industries [Public administration, defence and security](https://www.materialinsights.org/industries/public_admin/)[Software and IT services](https://www.materialinsights.org/industries/software_it/)**Examples:** Department of Telecommunications (India), TRAI, FCC, Ofcom, ITU

**Standards bodies and patent licensors**4 · Critical

Write the 4G, 5G, Wi-Fi and optical standards that let equipment interoperate, and license the essential patents behind them to device and network makers.
**Why critical:** Standards are set in a few global forums and essential patents are held by a small group of firms, so royalties and compliance are unavoidable. Technologies 3GPP releases (5G-Advanced, 6G research) Standard-essential patent pools Interoperability testing Open RAN specifications Depends on Industries [Education and research](https://www.materialinsights.org/industries/education_research/)[Professional services](https://www.materialinsights.org/industries/professional_services/)**Examples:** 3GPP, ETSI, TSDSI, Qualcomm, Nokia Technologies  Stage 2 **Network equipmentRadio, core and transport equipment vendors**5 · Chokepoint

Design and sell base stations, antennas, core-network software, routers and optical transmission systems to operators, often with multi-year service contracts.^[2](https://www.delloro.com/news/ran-market-stabilized-in-2025/)^,^[3](https://www.fierce-network.com/wireless/delloro-says-huawei-and-ericsson-have-nearly-two-thirds-ran-market-share)
**Why chokepoint:** The top five vendors held 96% of macro radio sales in the first three quarters of 2025 and Huawei and Ericsson nearly two-thirds, with concentration at a ten-year high for the full year; many countries exclude Chinese vendors, leaving two or three choices. Technologies 5G massive MIMO radios Cloud-native core networks IP/MPLS routers Dense wavelength-division multiplexing optics Network automation software Depends on Commodities [Cu Copper](https://www.materialinsights.org/commodities/copper/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/)[Ga Gallium](https://www.materialinsights.org/commodities/gallium/)[REE Rare earths](https://www.materialinsights.org/commodities/rare_earths/)[Au Gold](https://www.materialinsights.org/commodities/gold/) Chemicals [PTFE Fluoropolymers (PTFE, PVDF)](https://www.materialinsights.org/chemicals/fluoropolymers/)[PC Polycarbonate](https://www.materialinsights.org/chemicals/polycarbonate/) Energy [PE Transformers and power electronics](https://www.materialinsights.org/energy/e_power_electronics/) Industries [Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)[Semiconductors](https://www.materialinsights.org/industries/semiconductors/)[Software and IT services](https://www.materialinsights.org/industries/software_it/)**Examples:** Huawei, Ericsson, Nokia, ZTE, Tejas Networks

**Optical fibre and cable makers**3 · Important

Draw glass preforms into optical fibre and make fibre and copper cables sold to operators, tower firms and data-centre builders.
**Why important:** Several large makers in China, the US, Europe and India compete, but preform capacity is concentrated and new plants take a year or more. Technologies Preform deposition (VAD, OVD) Fibre drawing Ribbon and micro-duct cables Hollow-core fibre (emerging) Depends on Commodities [Qz Silica sand](https://www.materialinsights.org/commodities/industrial_sand/)[Ge Germanium](https://www.materialinsights.org/commodities/germanium/)[He Helium](https://www.materialinsights.org/commodities/helium/)[Cu Copper](https://www.materialinsights.org/commodities/copper/)[St Steel](https://www.materialinsights.org/commodities/steel/) Chemicals [H2 Hydrogen](https://www.materialinsights.org/chemicals/hydrogen/)[O2 Oxygen](https://www.materialinsights.org/chemicals/oxygen/)[LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[AAc Acrylic acid](https://www.materialinsights.org/chemicals/acrylic_acid/) Energy [HVAC AC transmission](https://www.materialinsights.org/energy/e_hvac/) Industries [Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)[Metal products](https://www.materialinsights.org/industries/metal_products/)**Examples:** Corning, Prysmian, YOFC, Sterlite Technologies (STL), HFCL  Stage 3 **Passive infrastructureTower and passive-infrastructure companies**3 · Important

Build and own towers, rooftop sites, power systems and in-building networks, renting space to several operators on long contracts.
**Why important:** Tower firms are national oligopolies and sites are hard to replicate quickly, but operators can build their own sites over months. Technologies Steel lattice and monopole towers Battery and solar hybrid power at sites Diesel gensets for backup Small cells and in-building systems Remote site monitoring Depends on Commodities [St Steel](https://www.materialinsights.org/commodities/steel/)[Zn Zinc](https://www.materialinsights.org/commodities/zinc/)[Pb Lead](https://www.materialinsights.org/commodities/lead/)[Li Lithium](https://www.materialinsights.org/commodities/lithium/)[Cem Cement](https://www.materialinsights.org/commodities/cement/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[ICE Internal combustion engines and gensets](https://www.materialinsights.org/energy/e_engines/)[LFP Lithium iron phosphate batteries](https://www.materialinsights.org/energy/e_li_lfp/)[PV Solar photovoltaics](https://www.materialinsights.org/energy/e_pv/) Industries [Construction and infrastructure](https://www.materialinsights.org/industries/construction/)[Electrical equipment](https://www.materialinsights.org/industries/electrical_equipment/)[Metal products](https://www.materialinsights.org/industries/metal_products/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** Indus Towers, American Tower (ATC), Cellnex, Summit Digitel

**Network construction and fibre-rollout contractors**2 · Supporting

Trench, lay ducts, string fibre and install equipment for operators and governments under turnkey or per-kilometre contracts.
**Why supporting:** Many contractors compete; rights-of-way permits, not contractor capacity, usually set the pace. Technologies Horizontal directional drilling Micro-trenching Aerial fibre deployment Splicing and testing GIS-based network planning Depends on Commodities [Agg Sand & gravel](https://www.materialinsights.org/commodities/sand_gravel/) Chemicals [HDPE High-density polyethylene](https://www.materialinsights.org/chemicals/hdpe/) Energy [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/) Industries [Construction and infrastructure](https://www.materialinsights.org/industries/construction/)[Machinery and equipment](https://www.materialinsights.org/industries/machinery/)**Examples:** Larsen & Toubro, STL Network Services, HFCL, MasTec

**Subsea cable builders and consortia**4 · Critical

Plan, manufacture, lay and repair the undersea fibre systems that carry nearly all international data, owned by carrier and cloud-company consortia.^[5](https://www.gtai.de/de/trade/ostasien/branchen/europaeische-firmen-sind-wichtige-lieferanten-1949410)
**Why critical:** Three system suppliers (SubCom in the US, ASN in France and NEC in Japan, with about 20% of the world market) lead cable production and laying, China's HMN Tech is the main alternative, and a small fleet of repair ships means cuts can take weeks to fix. Technologies Repeatered submarine fibre systems Cable-laying and repair ships Space-division multiplexing Landing stations Depends on Commodities [Cu Copper](https://www.materialinsights.org/commodities/copper/)[St Steel](https://www.materialinsights.org/commodities/steel/)[Ge Germanium](https://www.materialinsights.org/commodities/germanium/) Chemicals [LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/) Energy [Shp Ship propulsion](https://www.materialinsights.org/energy/e_marine/)[Cab Underground, submarine and superconducting cables](https://www.materialinsights.org/energy/e_cables/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Electrical equipment](https://www.materialinsights.org/industries/electrical_equipment/)**Examples:** SubCom, Alcatel Submarine Networks, NEC, HMN Technologies, Tata Communications  Stage 4 **Network operatorsMobile and broadband operators**4 · Critical

Buy spectrum and equipment, run the network and sell mobile, fixed broadband and enterprise connectivity to consumers and businesses.^[1](https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-economy/wp-content/uploads/2026/02/The-Mobile-Economy-2026.pdf)^,^[4](https://www.trai.gov.in/sites/default/files/2026-07/PR_No104of2026_0.pdf)^,^[6](https://telecomlead.com/5g/gsma-forecast-5g-to-reach-57-of-global-mobile-connections-by-2030-driving-11-3-trillion-economic-impact-124913)
**Why critical:** Markets have two to four operators; in India private operators hold 92.7% of wireless subscribers and a failure of one would strand hundreds of millions of users. Technologies 4G and 5G standalone networks Fixed wireless access Fibre to the home Network slicing Billing and customer platforms Depends on Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[LFP Lithium iron phosphate batteries](https://www.materialinsights.org/energy/e_li_lfp/)[ICE Internal combustion engines and gensets](https://www.materialinsights.org/energy/e_engines/) Industries [Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)[Electrical equipment](https://www.materialinsights.org/industries/electrical_equipment/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)**Examples:** Reliance Jio, Bharti Airtel, Vodafone Idea, BSNL, Verizon · ≈ US$ 1.19 trillion of mobile operator revenue in 2025, with about US$ 1.2 trillion of capex planned for 2025-2030^[6](https://telecomlead.com/5g/gsma-forecast-5g-to-reach-57-of-global-mobile-connections-by-2030-driving-11-3-trillion-economic-impact-124913)

**Wholesale, backbone and satellite carriers**3 · Important

Sell long-haul capacity, international transit, enterprise links and satellite connectivity to other operators, clouds and remote users.
**Why important:** Several carriers serve most routes, but some regions depend on one backbone or one satellite operator. Technologies Long-haul DWDM backbones Internet exchange and peering Low-earth-orbit satellite broadband Software-defined WAN Depends on Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Rkt Rockets and human power](https://www.materialinsights.org/energy/e_rockets/) Industries [Aerospace and defence](https://www.materialinsights.org/industries/aerospace_defence/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)**Examples:** Tata Communications, Lumen Technologies, Starlink (SpaceX), Eutelsat OneWeb  Stage 5 **Operations and customer serviceTelecom IT and managed-service providers**2 · Supporting

Build and run operators' billing, customer-care, network-operations and analytics systems, often under multi-year outsourcing deals.
**Why supporting:** Many IT firms, including large Indian ones, compete; migrations are costly but routine. Technologies OSS/BSS platforms Network operations centres AI-based network optimisation Fraud and spam detection Depends on Energy [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/) Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)**Examples:** Amdocs, Tata Consultancy Services, Tech Mahindra, Ericsson Managed Services

**Retail and recharge channels**1 · Commodity service

Sell SIM cards, recharges, handsets and broadband plans through shops, apps and payment platforms, earning commissions.
**Why commodity service:** Hundreds of thousands of retailers and many apps provide the same service. Technologies e-KYC onboarding Digital recharge and UPI payments Point-of-sale terminals Depends on Industries [Wholesale and retail trade](https://www.materialinsights.org/industries/wholesale_retail/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** Paytm, PhonePe, Sangeetha Mobiles

## Other sections

- [Overview](https://www.materialinsights.org/industries/telecom/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/telecom/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/telecom/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/telecom/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/telecom/linked-industries/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/telecom/materials/index.md)
- [Chokepoints and risks](https://www.materialinsights.org/industries/telecom/risks/index.md)
- [Sources](https://www.materialinsights.org/industries/telecom/sources/index.md)