Business internet access is expected to drive forward the popularity of the on-line market over the next few years, which has slowed considerably when compared to the astronomical growth rates of the 1990’s, says a new report.
According to In-Stat/MDR, internet access take-up rate is predicted to achieve strong single-digit revenue growth until 2008, as the number of US firms subscribing to on-line services grows from 90% in 2003 to nearly 98%.
Broadband is forecast to play a major roll in the addition of the extra 4 million lines, as more businesses start looking for additional add-on features such as increased bandwidth and improved service level agreements, which broadband can provide.
However, it’s not all good news for internet service providers; despite the growing number of connections and bandwidth over the next few years, revenues generated from these are expected to decline as a result of competitive downward pricing.
Senior analyst, Daryl Schoolar said: “Even though revenue growth from business internet access service revenue no longer generates the meteoric revenue growth of the late 1990’s, it still contributes positively to the telecom provider’s bottom line.
He added: “However, providers need to make sure they have the right mix of access services. Broadband has become an essential part of the offering mix, as dedicated services continue to decline. Also the spectre of business customers wanting lower prices still remains.”
Related Links
