Wireless service spending highest in Corp. Telecom

Corporate Telecom Spending Highest for Cellular

Spending by businesses on wireless services accounted for over one-third of the corporate bill for telecommunication services in 2006, says a new market research report from Insight Research. By the close of 2006, total US business spending on telecommunications services reached just over $132 billion, and by 2011 business spending is forecasted to grow to nearly $154 billion, according to the new research study.

Insight's newly released market analysis report, Telecom Services in Vertical Markets 2006-2011, reveals that wireless service revenues are expected to grow at a compounded rate of eight percent annually from 2006 to 2011. The majority of these wireless revenues come from four market segments: construction; financial, insurance, and real estate; professional business services; and transportation.

As for corporate wireline telecommunications expenditures in 2006, four industries -- wholesale trade; financial, insurance, and real estate; professional business services; and communications -- accounted for 70 percent of revenues, though little growth is predicated for wireline services over a five-year horizon. The study analyzes 14 vertical industries categorized by the Standard Industrial Classification (SIC) system, and focuses on corporate spending for wireline and wireless telecommunications services in each of the 14 industries.

"The price wars we've seen over the past six years are over, but revenue growth in wireline services is not forecasted to bounce back," says Robert Rosenberg, President of Insight. "Wireline revenue growth will be constrained by the growth of wireless spending, though that increase is going to be uneven across the various business sectors," Rosenberg concludes.


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