Insight Reports Businesses’ Increased Spending on Telecommunications Services

Double-digit growth over the next five years in terms of total spending has been predicted for the US telecommunications industry. Insight Research’s new market research report titled “Telecom Services in Vertical Markets, 2010-2015” reports this speculation. The sluggish economy with little or hiring in many industries will however not impact this expected growth.

At the end of 2010, $146 billion for telecommunications services were estimated to be spent by all US businesses. According to the Insight report, by the close of 2015, spending on wired and cellular calling will grow to $269 billion. A compound annual growth rate or CAGR of 13 percent is therefore represented over the forecast period.

All the growth in the telecommunications industry is being created by business spending for cellular and other wireless services. Over the five year forecast horizon, all US business spending for wireline services will be essentially flat. Over the period of 2010-2015, wireless expenditure is however expected to grow at a CAGR of 23.5 percent.

The market segments of construction; financial, insurance, and real estate; professional business services; and transportation will be the biggest spenders on cellular services. 14 vertical industries categorized by the NAICS have been analyzed by the study. Corporate spending for wireline and wireless telecommunications services in each of the 14 industries has been the focus of the study.

In a release, Robert Rosenberg, president of Insight said, “The year 2010 – like 2009 – was all about a shaky economy, unemployment hovering at 10 percent, and retrenchment in every industry sector we examined.”

According to Rosenberg, there are no new businesses being formed. Existing businesses are also retaining fewer employees. Existing employees, however are made more productive with wireless services. New ways to reach potential customers are also provideded to business with wireless services. Wireless is therefore responsible for the growth in demand for telecom services.

By Calvin Azuri, TMCnet Contributor

Calvin Azuri is a contributing editor for TMCnet.

Edited by Jennifer Russell

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