Broadband Growth Not Enough to Offset Wireline Voice Declines in US
SCOTTSDALE, Ariz., March 27, 2006 -
While growth in broadband wireline revenues remains robust in the US, it is not enough to overcome steady losses in consumer wireline voice revenues, reports In-Stat (http://www.in-stat.com). As a result wireline service revenues in the US will decline by 3.3% annually, on average, from 2004 to 2009, the high-tech market research firm says.
“Voice services, which have experienced persistent pressure from wireless alternatives, are increasingly being challenged by VoIP solutions,” says David Lemelin, In-Stat analyst. “Long distance revenues are increasingly becoming irrelevant as ‘any distance’ calling plans for wireline and wireless services take hold.”
Recent research by In-Stat found the following:
Traditional data services, including Frame Relay, Private Line and ATM, are experiencing negative revenue trends as businesses increasingly seek lower-cost Internet solutions.
DSL and cable modem growth is strong, but bundling strategies are pressuring revenue margins.
Business voice services are also experiencing revenue declines, but significantly less than those of consumers.
Recent In-Stat research, Wireline Remains in Decline: US Wireline Service 2005 (#IN0602211TX), covers the US wireline voice and data market. It includes subscriber and revenue forecasts for business and consumer wireline voice and data services through 2009. Analysis of wireline service trends, carrier strategies, and the impact of wireless services is also provided.
This research is part of In-Stat’s Service Provider Strategies service. The service provides an analysis of the US service provider industry, specifically shifts in market share and revenue trends due to convergence and wireline erosion. It also explores competitive strategies of US providers.
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