Wireless spending to eclipse wireline in 2006

Wireless spending to eclipse wireline in 2006


In-Stat, a research company based in Scottsdale, Arizona which focus on the high tech industries, has released a study that will cause a lot of sleepless nights in traditional phone companies. According to their research, businesses will, for the first time, spend more on wireless voice services in 2006 than they will on wireline. This is, of course, not seen by them to be a temporary trend. The gap will only widen, which is why phone companies have been driving convergence for the past several years in a bid to find ways to survive.

“The transformation of telecom spending continues unabated,” said Bryan Van Dussen, In-Stat analyst. “The relentless march toward IP-based networks, the unequivocal adoption of mobile solutions, and the pervasiveness of broadband have changed the face of business networks forever.”

As part of their research, In-Stat sees wireless expenditures growing in firms of more than 1,000 employees by 18% per year through 2009. It won’t just be the large companies that are seeing rapid growth, though. They believe small business spending on internet access in 2009 will be nearly twice what it was in 2005 as companies adopt DSL and higher bandwidth offerings.