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Telecommunications Industry Global Outlook

Service revenues in the global telecommunications industry will reach $1.3 trillion by the close of 2007, with continued strong growth in wireless leading the way, says a new market analysis report from The Insight Research Corporation.

According to the new industry market study, wireless service revenues are expected to grow at a compounded rate of nearly 10 percent over the next few years, while wireline service revenues grow much more modestly at two percent.

Nearly all of the growth in both sectors is expected to occur in broadband services, with wireless broadband service revenues expected to grow at a compounded rate of more than 60 percent over the forecast period, while wireline services grow at 10 percent over the same forecast horizon.

Insight's report states that in the growth environment set off by the rush to meet subscriber demand for broadband services, service providers are trying to create viable business models 'on the fly' in order to deliver new types of IP-based services, including Residential Video Telephony, Fixed Mobile Convergence, File Sharing/Downloading Services, Audio/Video Streaming Services, Location-Based Services, and Presence-Based Services.

The study highlights rapidly growing industry segments such as VoIP, WiFi and WiMax, fixed-mobile convergence, IMS, IPTV and streaming media, as well as technological innovations such as grid computing and DWDM and WDM in fiber optics. The report also looks at changes in telecommunications buying patterns among enterprises that purchase managed services as well as other communications services.

"The telecom industry has fully recovered from the malaise of the past few years and is again in a growth mode as it ramps up to build the broadband networks that will provide new service types," says Insight Research president Robert Rosenberg. "But even with the build-outs going full steam ahead, the overall revenue contribution from these new IP services is expected to be modest. Voice still rules, and will for some time to come," Rosenberg concluded.

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