Corporate Phone Bill To Hit $133 Billion This Year - InformationWeek

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2/22/2008
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Corporate Phone Bill To Hit $133 Billion This Year

Insight Research says wireless calls will make up almost 39% of corporate telecom bills this year, and wireless service revenues will grow at a compounded rate that exceeds 13% annually.

Companies will spend $133 billion on phone bills by the end of the year.

Insight Research reported this week that wireless calls will make up almost 39% of corporate telecommunications bills this year, and wireless service revenues will grow at a compounded rate that exceeds 13% annually, from last year through 2012. The study's findings are published in "Telecom Services in Vertical Markets 2007-2012."

The report said that wireless communications are the fastest growing expense area for businesses, and that spending on wired services remains flat.

The construction, financial, insurance, and real estate industries spend the most on wireless service, while wholesale trade, financial, insurance, real estate, professional services and communications account for 70% of wired services spending.

"Even without the threat of a recession, revenue growth in wireline [wired] services was not forecasted, but now it seems close to a certainty," Robert Rosenberg, president of Insight, said in a statement. "On the plus side for carriers, wireless spending is forecasted to increase at a healthy rate, but that increase is going to be uneven across the various business sectors."

The market research report examines 14 vertical markets representing most U.S. businesses and how those markets drive telecommunications revenue. It uses statistics from the U.S. Census, the Bureau of Labor Statistics, the Bureau of Economic Analysis, the Federal Communications Commission, Standard & Poor's, and a private study of about 480,000 businesses, for its projections.

The authors surmised that telecommunications vendors may be able to differentiate themselves, maintain profitability, and sustain growth if they sell by vertical industry as they endure a slow economy and heated competition.

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