DTH

Broadband demand drives highest telecom growth since 2000

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MUMBAI: Last year, the US telecom market grew at its fastest rate since 2000, showing that the drive towards convergence continues to stimulate the telecommunications industry, according to TIA’s 2007 Telecommunications Market Review and Forecast.

Each year, TIA’s Telecommunications Market Review and Forecast analyses the trends affecting the information and communications technology industry. The report includes an overview of the entire industry, as well as detailed sections on the landline, wireless, equipment and international markets.

TIA’s annual review of the health of the telecom industry shows that the worldwide telecom market grew 11.2 per cent in 2006 to total $3 trillion in revenue, while the US market grew 9.3 per cent to total $923 billion.

Demand for broadband and high-speed services is fueling this growth, as carriers invest in new fiber, new IP technology and new wireless infrastructure to provide state-of-the-art voice, video and data services.

Europe has the largest telecom market, measuring at $1 trillion, with the Asia/Pacific third at $715 billion. Overall, the international market grew 12.1 per cent in 2006. Middle East/Africa was the fastest- growing region, expanding at 21.6 per cent. By 2010, the global market is expected to reach $4.3 trillion in revenue.

TIA president Grant Seiffert says, “Consumers are thirsty for broadband, and this report shows carriers are rushing to meet the demand. Technologies like voice over Internet protocol (VoIP) and broadband video, as well as new mobile data services, are sparking new growth in the telecommunications industry. As a result, carriers are offering more competitive all-in-one bundled packages, and consumers are seeing lower prices and more services.”

The report forecasts growth for competing new broadband technologies such as fiber, satellite, wireless and broadband over powerline, which combined will account for more than 11 per cent of broadband subscribers in 2010.

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