U.S. businesses will spend $154 billion for telecommunications services in 2012 and business spending on wired and wireless calling will grow to $184 billion by the close of 2016, representing a compound annual growth rate (CAGR) of 4.8 percent over the forecast period, according to a new market report from Insight Research.
Insight’s newly released market analysis report, “Telecom Services in Vertical Markets, 2011-2016” found that business spending for cellular and other wireless services is creating all of the growth, while spending on wireline services will be essentially flat over the five year forecast horizon.
Wireless expenditures are expected to grow at a compounded rate of 9.4 percent over the period of 2011-2016. Four vertical industries – wholesale trade; financial, insurance, and real estate services; professional business services; and communications — account for 68 percent of total business telecom expenditures in 2011. The study analyzes 14 vertical industries categorized by the NAICS, and focuses on corporate spending for wireline and wireless telecommunications services in each of the 14 industries.
“The U.S. telecommunications industry continues to show modest revenue growth, driven by business Internet and mobility solutions,” says Fran Caulfield, Research Director for Insight Research. “As US business activity recovers, employment and network traffic increase. In parallel, business applications shift to the cloud and end users shift to wireless access, driving higher network and wireless revenues for service providers,” Caulfield concluded.
