SIC 3663 Radio and Television Broadcasting and Communications Equipment
SIC 3663
This industry manufactures radio and television broadcasting and communications equipment. Important products of this industry are closed-circuit and cable television equipment; studio audio and video equipment; light communications equipment; transmitters, transceivers, and receivers (except household and automotive); cellular radio telephones; fiber optics equipment; communication antennas; receivers; RF power amplifiers; satellite communications systems (space and ground segments); and fixed and mobile radio systems. Establishments primarily engaged in manufacturing household audio and communications equipment are classified in SIC 3651: Household Audio and Video Equipment; those manufacturing intercommunications equipment are classified in SIC 3669: Communications Equipment, Not Elsewhere Classified; and those manufacturing consumer radio and television receiving antennas are classified in SIC 3679: Electronic Components, Not Elsewhere Classified.
334220
Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
This industry covers a range of interrelated and sometimes competing communications systems, continually reinventing itself as its individual segments grow. Consumer trends, regulations, technological advances, and corporate decisions shape the emerging structure. The electromagnetic spectrum, through which wireless communications companies transmit signals, is controlled by the federal government, which exerted profound influence over this industry in the mid-2000s with new regulations and legislation.
Because communications systems were rapidly being transformed by the demand for customized, interconnected, and wireless services, products leading growth in this industry included wireless communication systems (pagers, cellular phones, personal communications systems), mobile communications equipment, and satellite communications devices.
In the mid-2000s this category contained several different types of communications technologies. Connectivity between these technologies was increasing, resulting in hybrid products and systems. This was reflected by the diversity of the players in this industry, which included cable television, cellular, electronics, telephone, computer, and satellite communications companies. Wireless communications services included cellular, paging, and specialized mobile radio.
Typically, high-technology consumer electronics equipment became less expensive in the years after introduction. This drop was seen in many products offered by this industry, and it helped to drive growth by attracting new consumer markets.
The early to mid-1990s saw significant growth in the paging industry due to increasingly sophisticated and lower-priced products and services. The number of paging subscribers in the United States grew significantly during the 1990s, reaching approximately 50 million by the decade's end, a healthy increase from 14 million at the beginning of 1993. The industry saw double-digit growth in the number of paging and messaging subscribers through 1997. Despite this growth, however, the vast majority of the leaders in the field of paging had been losing money steadily during the latter half of the that decade due to heavy competition in the industry, which was brought about by fierce price cutting schemes.
During the 1990s, the pager—which was initially popular with busy professionals such as doctors, business executives, and other "on call" professionals—successfully infiltrated the nonbusiness market. Pagers eventually became popular with parents trying to contact their children, waiters who needed to know when orders were ready, teenagers, and anyone with an interest in staying connected to others.
However, in the early 2000s the paging industry began facing some serious issues of viability as cellular telephones became increasing popular and affordable. By the mid-2000s, cellular companies were offering integrated cell phone packages that included one- and two-way paging systems, along with telephone services. Subsequently, the number of subscribers to paging and messaging services began to decline. Although one-way paging fell off sharply by the mid-2000s, the industry increased the number of two-way data and voice messaging systems.
Cellular telephones got their name from the small regions (cells) into which service areas were divided. Each cell contained a base station with a low-power transmitter/receiver. Base stations were connected to mobile telephone switching offices (MTSOs), either by telephone wire or microwave transmission. A computer at the switching office coordinated calls for the service area and monitored the calls' signal strength. When the signal lost strength because the caller was exiting the cell, the MTSO switched the call to the next cell. Cells sometimes overlapped one another or had gaps between them because of topographical obstructions.
The number of U.S. cellular subscribers was approximately 155 million at the end of 2003, with projected growth to reach 245 million by 2007. By the early 2000s, operators were replacing their analog technology with digital technology. This transition was viewed as critical to the cellular industry's competitiveness. A digital cellular system transmitted a caller's voice by converting the sound waves into a numerical code, rather than a wave pattern, as in analog systems. Calling capacity was expected to increase by a factor of three or more with digital cell sites. In addition to increased capacity, the conversion to digital offered other advantages: lower unit costs, better quality, increased privacy, and the promise of advanced services and data transmission.
Technological innovations in electronic circuitry and in the intelligence built into the cellular network resulted in new features that made cellular more attractive, and as phones and service plans became more affordable—partly due to a tough competitive market—cell phone use became increasingly common with the public sector. In the mid-2000s, high-tech phones and all-in-one service packages were quickly inundating the market. Cell phones with color screens, camera...
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