Broadband Growth Boosts Dwindling Telecom Revenue - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure

Broadband Growth Boosts Dwindling Telecom Revenue

Revenues from traditional telephone services are negatively affecting telecom providers but will be partially offset by the growth of broadband, according to an In-Stat report released Wednesday.

As revenues from traditional telephone services continue to negatively impact telecom providers, the decline in revenues will be partially offset by the growth of broadband services and cable television, according to a report released Wednesday.

In-Stat said total consumer spending on communication services will fall to $106.7 billion in 2009 from $114.8 billion in 2004. The bright spot in the gloomy report, however, is broadband, which is expected to grow from a 28.6 percent market penetration in 2004 to nearly 50 percent by the end of 2009.

"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," said In-Stat analyst Amy Cravens in a statement. "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."

In-Stat said about 35 percent of the respondents to its Consumer Telecom Survey said they currently buy a bundle of telecom services from a single provider.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
News
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
Slideshows
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll