Wireline Services Decline Continues for Telcos

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Wireline Services Decline Continues for Telcos

Another interesting Instat research report you can buy claiming that wireline (a.k.a. landline) services continue to decline.  Heck, I could have told you that for free!  Between cell phones, and broadband VoIP ramping up, who needs landlines anyway? (911 issues not withstanding)

Check it out - they even cite VoIP in the research report...

Wireline Services Decline Continues for Telcos

SCOTTSDALE, Ariz., January 31, 2005 - Revenue from traditional wireline services will continue a steady decline over the next few years in the US, and carriers will have to promote other services to make up the difference, according to In-Stat (http://www.in-stat.com). US wireline voice service revenue will drop an average of 3.2% per year from 2003-2008, the high-tech market research firm forecasts.

"Consumer wireline voice services have been especially hard hit due to the growth of wireless voice services and increased competition among wireline service providers," says Daryl Schoolar, In-Stat analyst. "There are several services beyond just wireless that can offset declining service expenditures for traditional wireline services. These include IP Telephony, QoS for Internet access, IP VPN, managed security & firewall, and Telco TV."

In-Stat has also found that:

  • Business expenditures will decline for wireline voice and data access/transport services due to adoption of Voice over IP and migration to lower-cost data services.  
  • Internet access services, both consumer and business, however, remain an area of growth.  
  • Providers of business services are going to have to start to think in a more consultative manner. Successfully selling in this environment requires a greater understanding of a customer's LAN, and a time commitment to seamlessly integrate the LAN and WAN together.

The report, "Wireline in Decline: US Wireline Services 2004" (#IN0401339TX),includes expenditure forecasts for the following services: consumer local and long distance voice, business local and long distance voice, consumer Internet access, business Internet access, Frame Relay, ATM, and private line. This report also contains broadband subscriber forecasts for both consumer and business users. To purchase this report, or formore information, please visit: http://www.in-stat.com/catalog/pcatalogue.asp?ID=37  

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