Broadband A Bright Spot In Lagging Telecom Market

US

In-Stat : Consumer service revenues for telecom providers in the US are expected to deteriorate over the next several years, falling to $106.7 billion in 2009 as decreasing revenues for voice services and dial-up outweigh revenue increases for both cable TV and broadband services, reports In-Stat (). Broadband, however, will be a significant revenue growth generator, with market penetration growing from 28.6 percent of the population in 2004 to nearly 50 percent by the end of 2009, the high-tech market research firm says. 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. 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.

• 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.

• According to In-Stat’s 2005 Consumer Telecom Survey, 35 percent of respondents currently purchase multiple services from a single provider.

Common Cents: Consumer Telecom & Technology Spending, 2004-2009 Publ20050622