Consumer Voice Market Declines in the US, Internet Access Grows

A recently published study from ATLANTIC-ACM, entitled “U.S. Telecom Wired and Wireless Sizing and Share: 2009-2014,” shows that the consumer voice segment of the market will see a tremendous decline during the following years. According to the study, a number of around $16 billion consumers are expected to leave the voice market from 2008 to 2014.

At the same time, the study also shows that the Internet access will register an impressive growth in the same time frame. According to ATLANTIC-ACM, customers are expected to choose lower cost VoIP options, which will drive to revenue declines in the voice segment of the telecoms market. The consumer VoIP revenue between 2008 and 2014 is projected to register an 11 percent compound annual growth rate (CAGR), yet it won't manage to offset the decline in consumer switched voice revenues, which is expected to be of 10 percent per year compounded from 2008 to 2014.

“We are witnessing the effects of technology migration,” said Dr. Judy Reed Smith, ATLANTIC-ACM CEO. “Consumers are moving toward wireless-only solutions in some cases, and VoIP substitution in others. While revenues in this particular segment will decline, this same technology migration is driving growth in other telecom segments such as wireless services and Internet access.”

Other findings of the study include the fact that, by 2014, wireline revenues will be outpaced by wireless revenues, mainly due to the migration towards mobile services. At the same time, the Internet access is expected to grow even further, being capable to add “$7 billion to the market through 2014,” the study unveils.

According to Judy Reed Smith, the growth expected to be registered in Internet access will be driven mainly by “fiber-to-the-home (FTTH) plays by AT&T, Verizon and Qwest.” Smith also added that these companies were projected to see an annual growth rate in revenues of 28 percent (compounded). More info on the U.S. Telecom Wired and Wireless Sizing and Share: 2009-2014 study can be found here.