Telecom Growth Is Tied To Broadband

In 2006, the US telecommunications market grew at its fastest rate since 2000, showing that the drive toward convergence continues to stimulate the telecommunications industry, according to TIA's 2007 Telecommunications Market Review and Forecast.

Each year, TIA's Telecommunications Market Review and Forecast analyzes the trends affecting the information and communications technology industry. The report includes an overview of the entire industry, as well as detailed sections on the landline, wireless, equipment, and international markets.

TIA's annual review of the health of the telecom industry shows that the US market grew 9.3 percent in 2006 to total $923 billion in revenue, and the worldwide telecommunications market grew 11.2 percent to total $3 trillion. Demand for broadband and high-speed services is fueling this growth, as carriers invest in new fiber, new IP technology, and new wireless infrastructure to provide state-of-the-art voice, video, and data services.

"Consumers are thirsty for broadband, and this report shows carriers are rushing to meet the demand," says Grant Seiffert, TIA president. "Technologies like voice over Internet protocol (VoIP) and broadband video, as well as new mobile data services, are sparking new growth in the telecommunications industry. As a result, carriers are offering more competitive all-in-one bundled packages, and consumers are seeking lower prices and more services."

The publication reports that the US market continues its transition, as both landline and wireless providers upgrade their networks to offer bundled and high-speed services to consumers. As a result, the US network and enterprise equipment markets experienced a double-digit increase in revenue for the third straight year in 2006. Accelerated fiber deployment is a principal catalyst for the market expansion.

The report forecasts growth for competing new broadband technologies such as fiber, satellite, wireless, and broadband over powerline, which combined will account for more than 11 percent of broadband subscribers in 2010. However, in 2006, cable modems and digital-subscriber-line (DSL) technology continued to dominate the US market, capturing 96 percent of the broadband market.

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