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Entertainment is driving the wireless market through demands for broadband applications such as multimedia and data services, with wireless use expected to rise to 270 million people, or 87 percent of the U.S. population, by 2010, according to TIA's 2007 Telecommunications Market Review and Forecast.
The annual report by TIA analyzes trends affecting the information and communications technology industry. The 370-page book includes an overview of the entire industry, as well as detailed sections on the wireless, landline, equipment and international markets.
Wireless service providers in the United States are upgrading their networks to offer bundled and high-speed services such as music, video games, television, children's applications, instant messaging and Internet applications. The market consists of transport services, handsets, capital expenditures, test and infrastructure equipment and professional services in support of wireless infrastructure –which totaled $190 billion in 2006 and is projected to reach $267 billion in 2010. Outside the United States, wireless transport services revenue alone totaled $560 billion last year and is projected to total $879 billion in 2010, according to TIA's report.
"Consumer demand for wireless services is unprecedented throughout the world, and carriers as well as manufacturers are scrambling to satisfy the marketplace needs," said TIA President Grant E. Seiffert. "Wireless, broadband and television are becoming key elements of a bundled landline package that we predict 77 percent of residential customers will take by 2010, up from 28 percent in 2006," he added.
Other key wireless facts from the TIA report:
- Wireless data revenue will grow 36 percent annually.
- Wireless is cutting into the demand for second lines and some people now rely exclusively on wireless.
- Wireless revenue passed landline revenue internationally in 2006 and will exhibit a 59 percent compound annual growth by 2010.
- Wireless customers outside the United States will increase by 975 million people by 2010; the number of wireless customers globally (including the U.S.) will reach 3.13 billion in 2010.
- Wireless customers in the Asia/Pacific region totaled 963 million at the end of 2006 and will total 1.58 billion by 2010 – more than twice the number expected to be in Europe by then.
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