Abstract
The size of a market measured in annual revenue is the starting point for
organizations to evaluate their reallocation of resources. In-Stat' s "Share of
Wallet" reports use industry and economic data to set a baseline for the size
of the wireless and wireline telecommunications markets within the US. They
then use trend analysis, information from In-Stat surveys, and economic
principles to forecast future market sizes.
This report looks at the spending within SOHO businesses. The focus is on
wireless services for both wireless voice and mobile data, and the spending on
wireless equipment within the SOHO segment. For perspective, wireless spending
data are compared with wireline spending data. The key finding is that
spending on wireless services is projected to exceed spending on wireline
services by 2010. This is surprising in that wireless spending in the majority
of SOHO businesses is managed very casually, as if it were a consumer
purchase. As it becomes the dominant telecommunications cost within an
organization, however, companies would do well to watch this expense more
closely.
Another significant finding is that mobile data spending is growing much
faster than the spending for wireless voice services. Wireless voice growth is
in single digits, with a 5% CAGR, while mobile data is five times that, with a
25% CAGR. People within the telecommunications industry who continue to focus
only on voice services will miss the greatest growth opportunities.