Wireless to Supply Most of Telecom Growth Through 2012
The US wireless telephone maket is projected to grow at an average of over 12% annually through 2012, as the traditional landline market stays essentially flat, according to The Insight Research Corporation.
INSIGHT, a telecom industry market research and analysis firm, estimates that the total US telecom wireline market reached $161.3 billion in revenue in 2007, but will grow at only a negligible rate to $163.8 billion by 2012. By contrast, the wireless market will almost double from $137 billion to $248.5 billion over the same period.
To cite one leading indicator of this trend, in the fourth quarter of 2005, Verizon Wireless accounted for 40% of Verizon’s total revenue, up from 35% in the fourth quarter of 2004.
Four vertical industries lead in wireless expenditure: construction; financial,
insurance and real estate; professional business services; and transportation.
Together, these four industries account for 46% of all business wireless
expenditures.
An increasing percentage of the business revenue will come from enhanced services, often for vertical industries, as telecom providers seek to avoid damaging price competition by positioning their services as value-added solutions rather than commodities, INSIGHT says.
Four vertical industries stand out as having the leading expenditures in the telecom industry: wholesale trade; financial, insurance, and real estate services;
professional business services; and communications. These four industry
categories accounted for 70% of total business telecom expenditures by the end of 2007.
In fact, if these top-tier industry segments were combined with two other industry segments—durable manufacturing and healthcare—the combined tier would account for over 80% of total business telecom expenditures.
It is these industries on which INSIGHT recommends telecom providers
focus their vertical marketing efforts. The report, Telecom Services in Vertical Markets 2007-2012. which provides analysis and recommendations for 14 vertical industries, is available for purchase.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.