Friday, January 19, 2007

Businesses Spend on Wireless

Businesses were open to spending a portion of their 2006 telecommunications budgets on wireless, according to a new Insight Research study that found nearly one-third of business' telecom spending budgets were earmarked for wireless services.

Last year, corporate wireline telecommunications expenditures still accounted for nearly 70% of revenue. Looking ahead, however, not much growth is expected in the wireline segment. Wireless service revenues are expected to increase at a compounded rate of 8% annually from 2006 to 2011.

As a whole, U.S. businesses spent more than $132 billion on telecommunications services last year. Insight predicts that number will increase to nearly $154 billion by 2011.

"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," said Robert Rosenberg, president of Insight, in a prepared statement. "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," he added.

For its research, Insight studied 14 vertical industries categorized by the Standard Industrial Classification (SIC) system, according to the research firm.


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