Broadband Growth Not Enough to Offset Wireline Voice Declines in US

In-Stat: While 2009 growth in broadband wireline revenues remains robust in the US, it is not enough to overcome steady losses in consumer wireline voice revenues. As a result wireline service revenues in the US will decline by 3.3% annually, on average, from 2004 to 2009.

Voice services, which have experienced persistent pressure from wireless alternatives, are increasingly being challenged by VoIP solutions,. Long distance revenues are increasingly becoming irrelevant as ‘any distance’ calling plans for wireline and wireless services take hold.

• 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.

Wireline Remains in Decline: US Wireline Service 2005 Publ 20060327