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Mobile Data to Surpass Fixed Voice in U.S.

The U.S. communications market will reach $406 billion in 2014 as mobile data revenue climbs to $94 billion, surpassing fixed voice (PSTN + VoIP) during the forecast period, according to the latest market study by Pyramid Research.

The executive study provides a comprehensive view of the U.S. communications market by analyzing key trends, evaluating near-term opportunities and assessing upcoming risk factors.

The U.S. communications market, including traditional pay-TV, generated $359 billion in service revenue in 2008 and is expected to grow at a CAGR of 2.5 percent from year-end 2009 to year-end 2014, reaching $406 billion, notes Dan Locke, Senior Analyst at Pyramid Research.

Most of the growth will be attributed to mobile data and IP networks. Mobile data is already larger than fixed broadband and it will surpass fixed voice (PSTN + VoIP) in 2011, climbing from $36 billion in 2008 to $94 billion in 2014.

The study found additional growth will be driven mostly by IP networks because IPTV will grow from $2 billion in 2008 to $15 billion in 2014.

VoIP will grow from $8 billion in 2008 to $22 billion in 2014 and fixed broadband will grow from $33 billion in 2008 to about $46 billion in 2014.

The decline of the PSTN voice revenue will result from the substitution of voice platforms both as fixed operators migrate customers to all-IP voice platforms and as consumers opt for mobile voice platforms, which also will eventually turn to IP.

Mobile broadband will be a further source for growth for the U.S. telecom market due to growing popularity of unlimited data and mobile broadband plans. Revenue related to mobile broadband access for laptops and Internet access for handsets will grow rapidly at CAGRs of 28 percent and 18 percent, respectively, from 2009 to 2014.

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