BuddeComm has released a new report titled, 2006 Telecoms, Mobile, and Broadband
in the United States of America.
The report points to VoIP and Triple Play bundles as major drivers in the telecom market.
Traditional landline revenues are forecast to decline steeply as competition from mobile (10% CAGR over the next five years) and VoIP (forecast to triple in subscriber numbers by 2010) continue to chip away, and new disruptive technologies such as WiMAX become a reality.
This report presents an overview of the regulatory environment, and examines developments in wireless, broadband, digital TV, Internet use, and triple play services.
Key highlights:
- During 2005 landline revenue fell 1.4% to $192.3 billion and telcos lost more than five million voice customers.
- VoIP has rapidly become one of telecom's fastest-growing segments, growing approximately 80% per annum, reaching around 9 million subscribers by June 2006. By 2015, an estimated 90% of all telephone lines in the USA are expected to be VoIP.
- The U.S. telecoms sector saw more consolidation during 2005 and 2006, first with the acquisition by Verizon Communications (Verizon) of MCI and then SBC Corporation’s acquisition of AT&T Corp, rebranded AT&T Inc (AT&T).
- In this increasingly concentrated market, the issue of net neutrality will take on greater significance in the triple play market and the broader Internet economy.
- Broadband subscriber growth remained strong at around 30%, though year-on-year growth continued to decline as penetration approaches 45% of households and 67% of Internet households.
- Although cable retains the lead in broadband, with approximately 57% of the market to DSL’s 43%, during 2005 the rate of growth of DSL was nearly twice that of cable broadband. Accordingly, DSL subscribers are forecast to exceed cable subscribers by early 2008.
- Although wireless broadband still constitutes a minor share of the broadband market, at around 1.5% of all broadband subscribers, it is expected to demonstrate exponential growth during the five years to 2010. For instance, Sprint Nextel announced in August 2006 that it will be deploying a 4G mobile WiMAX network in 85% of the US’s top 100 markets covering 100 million people.
For more information on this and other reports from Budde Communications, visit the company’s Web site.
