Telecom employment growth confirms fundamental strengths in today's difficult industry environment

Fiber Optics Weekly Update, Nov 22, 2002

The Massachusetts Telecommunications Council (MTC) released the research report, "The Telecommunications Industry in Massachusetts: A Time of Transition," which puts telecom employment in Massachusetts at 131,790 jobs, an increase of 40 percent since 1998 and 135 percent since 1993. The report, which was developed for the MTC by Professor Craig Moore, UMass Amherst, Isenberg School of Management, with economic research support provided by the University of Massachusetts Donahue Institute, also identified key issues affecting future growth of the industry. Issues identified include: broadband deployment, workforce development, R&D funding, and regulatory and tax policies that encourage competition.

According to Ron Sege, president and CEO of Ellacoya Networks and Chairman of the MTC, "This report is encouraging because it reinforces what we have been hearing anecdotally from MTC members -- despite difficult times, there are many telecommunications companies in Massachusetts that remain fundamentally strong." He adds, "These companies are managing their budgets carefully, but continue to vigorously pursue emerging telecom opportunities with new products and services that will ultimately drive the future success of the industry.

Among the major findings of the research report is an increase in telecommunications employment to 131,790 jobs as compared to 93,988 telecom jobs in Q2 1998. This is an increase of 40 percent since 1998, despite some high profile layoffs and recent nationwide economic difficulties. In addition, the number of separate companies in the industry has grown substantially from 2001 to 2002, as a few large companies have given way to many smaller ones.

Employment in communications services, the largest segment of the telecommunications industry, accounting for 37 percent of jobs, is key to the continued growth in overall telecommunications employment. Jobs in communications services have almost doubled since 1998, going from 24,660 (1998) to 49,135(2002). This growth more than offset a slight decline in jobs in companies categorized as developers and manufacturers of telecommunications equipment, which went from 24,392 jobs in 1998 to 24,137 in 2002.

Recognizing that the telecommunications industry is in a period of transition, a number of focus groups were convened to identify issues that will impact the future of telecommunications in Massachusetts. Some of the issues and initiatives identified by these telecom executives and other industry leaders include: increased broadband deployment, ongoing support for workforce development, a substantial monetary commitment to R&D efforts, and regulatory and tax policies that encourage industry growth. The report was sponsored by Hale and Doff and PricewaterhouseCoopers.