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North American Telecommunications Industry Will Hit a Milestone in 2014

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December 16, 2010

North American Telecommunications Industry Will Hit a Milestone in 2014

By Gary Kim, Contributing Editor

North American telecommunications will hit a noteworthy milestone in 2014, if a new Infonetics (News - Alert) Research prediction proves correct. The firm predicts that by 2014, video entertainment revenue will roughly match voice revenue. For a business that historically has made most of its money from selling voice services, that would be quite a milestone, indeed. 

Separately, Atlantic-ACM forecasts that, by 015, U.S. telcos will make about as much money selling data services as they will voice services. If you wanted any proof of the importance of "triple play" strategies, those forecasts provide the answer. By the middle of this decade, U.S. telecommunications will have reduced their reliance on voice revenues to a point where it might represent a third of total landline revenue. 

Telecom service providers are bringing in $245.5 billion from North American households subscribing to voice, video, and Internet access services in 2010, up about 2.1 percent from 2009 levels. 

Infonetics expects the residential services market to grow to $270 billion in 2014, as revenue from voice services declines while broadband access and video service revenue increases.

The number of residential mobile broadband subscribers in North America is nearly doubling in 2010 over 2009, to about 15 million, and is forecast by Infonetics to jump to 70 million by 2014.

Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.

Edited by Jaclyn Allard

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