Consumer service revenues for telecoms providers in the US are predicted to deteriorate over the next several years, dropping to $106.7 billion in 2009 due to decreasing revenues for voice services and dial-up outweigh revenue increases for cable TV and broadband, according to In-Stat.
The high-tech market firm predicts broadband to continue growing in strength, with market penetration increasing to nearly 50% of the population by the end of 2009, up from 28.6% in 2004.
Commenting on broadband saturation, Amy Cravens, In-Stat analyst said: “The migration from dial-up to broadband is good news for service providers, as the monthly fees for broadband will remain substantially higher than for dial-up.”
She added: “With the $13.7 billion in broadband revenues in 2004 versus $10.9 billion in dial-up revenues, broadband has already outpaced dial-up as a revenue-generating opportunity.”
In-Stat also showed total consumer spend on communications services, including local voice, long distance, cable TV, dial-up and broadband to total $114.8 billion in 2004, by 2009 however, broadband service are expected to generate $15 billion more per year than dial-up.
The latest forecasts from Jupiter Research estimate that online households in the US will reach 88 million by the end of 2010, up from 75 million at the end of 2004, with an expected 78% penetration rate (see US Online Households Forecast To Hit 88 Million By End Of 2010).
Residential broadband adoption is expected to grow much faster, increasing to more than three-quarters of the online population by 2010, up from just under half of connected households in 2004.
Analyst, eMarketer, projects that broadband households will grow at a compound annual rate of 19.4% between 2004 and 2008, forecasting penetration for all households to grow to 56.3% in 2008, up from 23.1% in 2003.
Broadband analysis company, Point Topic, show the continued uptake of broadband, revealing worldwide digital subscriber lines (DSL) to have increased by 10.5% to 107.3 million in the first quarter of 2005 (see Global DSL Increase By 10.5% In Q1 2005).
Over 37 million DSL lines were added since March 2004 last year, signalling a 54% increase for the 12 months ending 31 March 2005. Just over 10.1 million lines were added in Q1 2005 alone, showing that DSL penetration is continuing to enjoy good momentum in 2005, following the 10.4 million lines added in the fourth quarter of 2004.
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