US Firms to Spend More on Wireless Voice than Wireline in 2006

For the first time, in 2006 US businesses of all sizes will spend more on wireless voice services than on wireline, . And wireless data services will make significant gains as well over the next several years. Expenditures by enterprise firms (1,000 or more employees) on wireless data will grow an average of 18% per year through 2009. The transformation of telecom spending continues unabated. The relentless march toward IP-based networks, the unequivocal adoption of mobile solutions, and the pervasiveness of broadband have changed the face of business networks forever.

• Mid-sized firms accounted for 12.4%, or $24 billion, of total US business telecom spending in 2005; these numbers will reach $33 billion and 13% of the total US business market by 2009.

• Small business spending on Internet access will grow to $8.2 billion by 2009, up from $4.4 billion in 2005, largely due to adoption of DSL and higher bandwidth services.

• Spending on wireless data services will outpace all other categories in the SOHO segment, growing to nearly $2.2 billion in 2009, up from $0.47 billion in 2005.

T Share of Wallet: Telecom Trends and Expenditures in the US Business Market, US Enterprises (1,000+ Employees)

Publ 20060111