Report Hails Broadband Growth

A new report from In-Stat declares that broadband remains a bright spot  in an otherwise lagging telecom market.

According to the release announcing Common Cents: Consumer Telecom & Technology Spending, 2004-2009, although service revenues for US telcos are expected to decline through 2009, broadband generate significant revenue growth. The report posits that market penetration will grow from 28.6 percent of the population in 2004 to nearly 50 percent by the end of 2009.

"The migration from dial-up to broadband is good news for service providers, as the monthly fees for broadband will remain substantially higher than for dial-up," says Amy Cravens, In-Stat analyst. "With $13.7 billion in broadband revenues in 2004 versus $10.9 billion in dial-up revenues, broadband has already outpaced dial-up as a revenue-generating opportunity."  

The research tells us that:

• Total consumer spending on communication services, including local voice, long distance, cable TV, dial-up, and broadband was $114.8 billion in 2004.
  
• By 2009, broadband services will generate $15 billion more per year than dial-up.
  
• 35 percent of the respondents currently purchase multiple services from a single provider.

The report explores which services will contribute to a decline in US consumer telecom spending, as well as which services are expected to continue to grow. The report also explores consumer demand for voice services, video services, and Internet services, including revenue forecasts through 2009. For more on this report, please click here.