Researcher: Wireless To Continue Taking Wireline Revenues - InformationWeek

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Researcher: Wireless To Continue Taking Wireline Revenues

Wireless will continue to take business away from wireline services, forcing telecom operators to find other sources of revenue, an industry analyst says.

Confirming financial results posted recently by large telecom operators, a study released Monday says that wireless service will continue to take a divot out of the revenues received by large telecom operators for wireline services.

"Consumer wireline voice services have been especially hard hit due to the growth of wireless voice services and increased competition among wireline service providers," Daryl Schoolar, an analyst for market research firm In-Stat, said in a statement. He added that enterprise spending for wireline voice service also will decline, largely because of adoption of voice-over-IP.

Verizon Communications said last week that its revenues from wireline phone service is down while posting significant revenue -- and profit -- increases from Verizon Wireless. Those results match those posted by other large telecom vendors.

Schoolar noted that the telecoms should turn to other services in addition to wireless to offset the loss of revenue. Such services could include voice-over-IP, managed security services and television delivered over broadband, he said.

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