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Wireline Remains in Decline: US Wireline Service 2005
In-Stat/MDR, March 2006, Pages: 34
Traditional wireline service revenues in the US remain on an overall negative trend. Revenue shrinkage is fuelled primarily by steep declines in consumer voice services expenditures, where this report forecasts a CAGR of negative 8.5% between 2004 and 2009. Business voice services are also experiencing negative CAGR, but significantly below that of consumer. Long-distance revenues are decreasing at a much faster pace than local-service revenues, as many users rely on their wireless service for long-distance calls.
Growth in broadband wireline revenues remain robust, particularly in the DSL and cable modem arenas, but are not sufficient enough to offset the overall negative trend.
The dynamics of wireline service are changing, which also contributes to increasing pressure on revenue streams. These changes in the market dynamics also create new revenue opportunities for service providers, including managed services, IP telephony, as well as QoS and SLA offerings.
To take advantage of these opportunities, service providers will need to either acquire resources to provide a wide range of services in order to avoid reliance upon shrinking individual service silos, or develop strategic relationships and partnerships.
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