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A Multi-Trillion Global Telecom Marketplace

Entertainment is driving the wireless market through demands for broadband applications such as multimedia and data services, with wireless use expected to rise to 270 million people, or 87 percent of the U.S. population, by 2010, according to TIA's 2007 "Telecommunications Market Review and Forecast."

The annual report by the Telecommunication Industry Association analyzes trends affecting the information and communications technology industry. Wireless service providers in the United States are upgrading their networks to offer bundled and high-speed services such as music, video games, television, children's applications, instant messaging and Internet applications.

The market consists of transport services, handsets, capital expenditures, test and infrastructure equipment and professional services in support of wireless infrastructure -- all of which totaled $190 billion in 2006, projected to reach $267 billion in 2010. Outside the United States, wireless transport services alone totaled $560 billion last year and are projected to total $887 billion in 2010, according to the TIA report.

"Consumer demand for wireless services is unprecedented throughout the world, and carriers as well as manufacturers are scrambling to satisfy the marketplace needs," said TIA President Grant E. Seiffert. "Wireless, broadband and television are becoming key elements of a bundled landline package that we predict 77 percent of residential customers will take by 2010, up from 28 percent in 2006," he added.

Other key findings and forecasts from the TIA report include:

- Wireless data revenue will grow at a 36 percent compound annual rate.

- Wireless is cutting into the demand for second landlines, and some people now rely exclusively on wireless phone service.

- Wireless revenue passed landline revenue internationally in 2006 and will be 59 percent greater by 2010.

- Wireless customers outside the United States will increase by 975 million people by 2010, when the wireless total will reach 3.13 billion.

- Wireless customers in the United States will total 270 million in 2010, up from 216 million last year and 135 million just five years earlier.

- Wireless customers in the Asia-Pacific region totaled 963 million at the end of 2006 and are expected to total 1.58 billion by 2010 -- more than twice the number expected to be in Europe by then.

- Wireless data revenue in the United States was nearly $13 billion last year and is expected to reach $44 billion in 2010.

- Wireless data and multimedia services are forecast to make up 24 percent of all wireless revenue in the United States in 2010, although accounting for just 6 percent in 2006.

- Wireless flat-rate pricing is taking over -- stand-alone long distance is disappearing.

- Prepaid wireless service is the fastest growing segment of the wireless industry, increasing from 12 million users in 2002 to 30 million in 2006 and projected to total 55.5 million in 2010.

- Wireless hot spots worldwide have increased from 70,000 in 2004 to 132,000 in 2006, with projections of 218,000 in 2010.

- Overall global telecom spending will rise from $3 trillion in 2006 to $4.3 trillion in 2010.

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