Flow from Carriers to users...How the Wireless Industry is structured. There are three major components to the wireless industry. They are the manufacturers, the carriers or service providers, and third-party agents. Manufacturers make the wireless equipment - the telephone handsets - while secondary market manufacturers usually contract with the manufacturers to make the variety of accessories that accompany many wireless telephones. Carriers provide the actual cellular telephone service including the phone number that is assigned to the wireless telephone. Finally, third-party agents are companies, not affiliated with either the manufacturers or the carriers, who sell service and/or telephone equipment. A common practice in many carrier's retail stores, and also with third-party agents, is to provide a wireless telephone at a reduced price from its retail value as part of new service agreements. The carriers or third-party agents buy these phones from the manufacturers and then resell them to their customers at special reduced rates when new cellular service is activated. The service, however, is independent of the actual wireless telephone. Most manufacturers do not own or operate cellular networks, although some may resell service, and most carriers do not manufacture wireless equipment although some divisions of the parent company to which they belong may make equipment. |
