US Telecom Market Grew 9.3% to $923B in 2006; Worldwide Market Hits $3 trillion

The U.S. telecommunications market grew 9.3% in 2006, the fastest rate since 2000, to $923 billion in revenue, while the worldwide telecommunications market grew 11.2% to $3 trillion in revenue, according toTIA’s 2007 Telecommunications Market Review and Forecast.   

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.

The report shows that U.S. network and enterprise equipment markets experienced a double-digit increase in revenue for the third straight year in 2006, driven by accelerated fiber deployment.

More than 12 million miles of fiber were deployed in 2006, up 9.1% from 2005, with nearly 10 million miles being deployed by the telephone companies.

Highlights from TIA Report: 

  • 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% of broadband subscribers in 2010. 
  • Iin 2006, cable modems and digital subscriber line (DSL) technology continued to dominate the U.S. market, capturing 96% of the broadband market. 
  • By 2010, 87% of Internet connections will be over broadband technology.
  • Though accounting for just 10% of U.S. wireless revenue in 2006, wireless data and multimedia services are forecast to make up 24% of all wireless revenue by 2010. 
  • VoIP, the broadband-based phone technology, is forecast to make up 34% of all U.S. residential landlines by 2010, or 25.5 million subscribers, up from just 10% and 9.5 million subscribers in 2006. 

Worldwide Telecom Market:

Overall, the international market grew 12.1% in 2006. Middle East/Africa was the fastest- growing region, expanding at 21.6%. 

Europe is the largest telecom market at $1 trillion, followed by U.S. at $923 billion, and Asia/Pacific third at $715 billion. 

By 2010, the global market is expected to reach $4.3 trillion in revenue.

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.

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