Market Analysis: US Telecommunications Services 2014-2018 Forecast

Submitted By RmblockerS
Words: 4113
Pages: 17
Open Document
Market Analysis

U.S. Telecommunications Services 2014–2018 Forecast
Amy Lind

Courtney Munroe

IDC OPINION
Businesses and consumers continue to utilize an ever-expanding number of bandwidth-intensive applications and to demand faster connections to the Internet and to corporate sites, further driving the demand for bandwidth. As a result, the telecommunications services market experienced positive growth in 2013, with wireline and wireless services generating $346.8 billion in revenue at year-end.
However, the wireline segment is under considerable pressure from wireless technologies and services (particularly mobile data services), which will drive mobile revenue gains through 2018. IDC finds the following:
The revenue outlook for telecommunications services will remain stable but flat, with a fiveyear compound annual growth rate (CAGR) of 1.2%. In 2013, wireline and wireless services revenue totaled $346.8 billion. Year-over-year growth rates will remain positive but decline modestly throughout 2018 — when the market peaks at $368 billion in revenue.
Wireless services revenue surpassed revenue generated by landline services in 2009 and has continued to gain share at wireline's expense since then. By 2018, wireless services will generate $237.3 billion in revenue and account for 64.5% of the total telecom services market in the United States.
Data services are the growth engine of the wireline services market. In 2013, wireline data services accounted for 53% of total wireline services revenue, and by 2018, it will account for
62% of total wireline services revenue. In contrast, wireline voice services revenue is in steady decline as healthy growth of VoIP services will not be enough to offset continued contraction of legacy voice services.
Both the residential and enterprise landline markets are contracting at low single-digit rates.
The residential wireline market is declining at a CAGR of -0.1%, while the business wireline market is declining at a CAGR of -1.4%. Data services — specifically IP services such as broadband, IP VPN connectivity, and Ethernet-based service offerings — are driving growth in both the residential and enterprise segments; however, business data services growth will be slower than residential data growth.

May 2014, IDC #248668

IN THIS STUDY
This IDC study analyzes the U.S. telecommunications services market. In addition to discussing key trends, the study compares wireline and wireless revenue projections, forecasts voice and data wireline services revenue, and segments wireline services revenue by residential and business customers. Methodology
This study reflects IDC's ongoing research on the U.S. telecommunications services market. The analysis and forecasts are based on public and proprietary information including financial reports, statistics from governmental organizations, insights derived from IDC's consulting engagements, historical growth, and interviews with service providers, equipment manufacturers, and other participants in the communications services market. It also draws from discussions with end users and incorporates results from IDC's numerous telecom-related surveys. This study segments the telecom services market as follows:
Voice services include:
Local, long distance, and value-added voice features
VoIP
Data services include:
Internet/broadband access
IP VPN
Frame relay and ATM
Private line
Ethernet connectivity
The forecasts exclude professional services, managed services, Web hosting, and cloud-based services. Note: All numbers in this document may not be exact due to rounding.

SITUATION OVERVIEW
The U.S. telecommunications services market has undergone significant changes in the past decade, driven by intensified competition as communications service providers struggle to gain or maintain market share in an increasingly competitive market. New technologies and services are replacing entrenched legacy solutions and end users are dramatically changing their
Show More

Related Documents: Market Analysis: US Telecommunications Services 2014-2018 Forecast

Economics and Similar Services Essay

margin too. But as the cost to enter the industry is minimal, I would say the threat of new entrants in medium. Entry Barriers: LOW: 1.Companies is well established and offer almost similar services (little product differentiation). 2. Low capital requirements 3.As the switching cost is low for clients, IT service companies usually expect a contract for a year or more, so clients may not be able to switch easily, making it difficult for new entrants. 4. Economies of scale – is not essential in this…

Words 500 - Pages 2

Nature Of Economics

Economic Notes The Nature of Economics Economics refers to the study of the production, distribution, and exchange of goods and services in an economic system Scarcity of resources refers to resources being limited. Resources are not infinite and therefore choices must be made on how the will be used. Opportunity cost means that the use of resources always involves an opportunity foregone in using the resources for some other activity or purpose. The economic problem arises because there are…

Words 474 - Pages 2

Essay on Economics and Economy Market Economy

by the ability to produce more of a good or service with a given amount of time and resource; not the same thing as comparative advantage Aggregate Output- the economy’s total production of final goods and services for a given time period, usually a year. Real GDP is the numerical measure of aggregate output typically used by economists. Business Cycle-the short-run alternatives alternation between economic downturns, known as recessions, and economic upturns known as expansions. Capital- manufactures…

Words 730 - Pages 3

Marketing: Economics and Price Essay

resources available to fulfill those wants. Economics: the study of the choices people make to attain their goals, given their scarce resources. Economic model: A simplified version of reality used to analyze real-world economic situations. Market: a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade. Markets three important ideas:1.people are rational 2.People respond to economic incentives. 3.Optimal decisions are made at…

Words 2215 - Pages 9

Essay Critique: Bank and Service Quality

Sakarya Turkey, published the research article, The Relationship between Service Quality, Economic and Switching Costs in Retail Banking, which details how the banking sector In Turkey and the operating banks within it have been forced to more proactively strive to retain their current customers rather than attracting new customers as a way to improve their competitive positioning. As a result, the areas of service quality, economic costs and switching costs have been researched. Overview of Article…

Words 1879 - Pages 8

College Econ Notes Essay

Notes Three Economic Questions: What goods and services should be produced? -Not just your basic needs and wants - Need to decide how much of the available resources should be devoted to other things -Schools -National Guard 2. How should those goods and services be produced? -All things require land, labor, and capital - These things can be combined in different ways - What is the most efficient way? 3. Who consumes these goods and services? -How are…

Words 1581 - Pages 7

Essay on Introductory Micro

Microeconomics: the branch of economics that examines individual decision making by firms, households and consumers, and the way they interact in specific industries and markets ECONOMIC QUESTIONS What goods and services are produced and in what quantities? How will the various goods and services be produced? When will the various goods and services be produced? Where will the various goods and services be produced? Who will consume and produce the goods and services that are produced? KEY IDEAS…

Words 717 - Pages 3

Essay on Wireless Telecommunication Industry Analysis

Industry………………………………………………... Page 1 Industry Data Compared to U.S. Economic Data………………………... Page 2 Service Subscriptions……………………………………………………………...Page 2 Data from 2004 – 2014……………………………………………………. Page 2 Importance to the Industry ……..………………………………………… Page 3 Unemployment Rate ………………………………………………………….….. Page 3 Data from 2004 – 2014……………………………………………………. Page 3 Importance to Industry …………………………………………………… Page 3 Industry Data Compared to U.S. Economic Data………………………... Page 4 Significant Industry Forces ………………………………………………………

Words 1818 - Pages 8

Environmental Economics Part 1: Chin Factory To The World

1st Video: Environmental Economics Part 1 China: Factory To The World Recently, the Chinese economy has grown rapidly Millions own a car, travel and buy goods China has as huge labor pool China has 7 of the world’s 10 most polluted cities China is the cancer capital of the world Rivers are being sucked dry and polluted Environmental laws and policies are ignored Local NGOs identify, document, and report pollution Economic growth must be accompanied by just and effective environmental public…

Words 5347 - Pages 22

Marine Ecosystem Services In Zanzibar Essay

com/locate/ocecoaman Economic value of marine ecosystem services in Zanzibar: Implications for marine conservation and sustainable development Glenn-Marie Lange a, *, Narriman Jiddawi b a b Policy and Economics, Environment Department, The World Bank, 1818 H St, NW, Washington, DC, USA Institute of Marine Sciences, University of Dar Es Salaam, P.O. Box 668, Zanzibar, Tanzania a r t i c l e i n f o a b s t r a c t Article history: Available online 8 August 2009 Marine ecosystem services are seriously…

Words 1724 - Pages 7