Abstract
Traditional wireline service revenues in the US remain on an overall negative
trend. Revenue shrinkage is fueled primarily by steep declines in consumer
voice services expenditures, where In-Stat forecasts a CAGR of negative 8.5%
between 2004 and 2009. Business voice services are also experiencing negative
CAGR, but significantly below that of consumer. Long-distance revenues are
decreasing at a much faster pace than local-service revenues, as many users
rely on their wireless service for long-distance calls. Growth in broadband
wireline revenues remain robust, particularly in the DSL and cable modem
arenas, but are not sufficient enough to offset the overall negative trend.
The dynamics of wireline service are changing, which also contributes to
increasing pressure on revenue streams. These changes in the market dynamics
also create new revenue opportunities for service providers, including managed
services, IP telephony, as well as QoS and SLA offerings. To take advantage of
these opportunities, service providers will need to either acquire resources
to provide a wide range of services in order to avoid reliance upon shrinking
individual service silos, or develop strategic relationships and partnerships.
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