2013 USA - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This report provides a comprehensive overview of trends and developments in the USA’s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major Players, Revenues, Subscribers, ARPU, MoU;
  • Internet, VoIP, IPTV;
  • Mobile Voice and Data Markets;
  • Broadband (FttH, DSL, cable TV, wireless);
  • Convergence and Digital Media;
  • 3G subscriber and mobile ARPU forecasts to 2015;
  • Broadband market forecasts for selective years to 2020.

Key developments:

Verizon’s LTE network reaches two-thirds population coverage, MetroPCS launches VoLTE; Sprint closes iDEN network; FCC begins measuring mobile broadband performance; AT&T buys spectrum from Verizon for $1.9 billion; AT&T to invest $14 billion in LTE and U-verse network to 2015; T-Mobile merges with MetroPCS; telcos’ operating and financial data to Q1 2013; market developments to mid-2013.

Companies covered in this report include:

AT&T, Verizon, Sprint Nextel, T-Mobile, TracFone, MetroPCS Communications, Leap Wireless, Frontline, Alltel, US Cellular, Clearwire, Sprint, Qwest, CenturyLink, Windstream, Fairpoint, Cincinnati Bell, Comcast, Google, HughesNet, ViaSat.

Researcher:- Henry Lancaster
Current publication date:- July 2013 (11th Edition)

Executive Summary

US ahead of the pack in LTE adoption

BuddeComm’s Annual publication, USA- Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media sectors of one of the world’s largest markets. The report includes the FCC’s 2012 market data, telcos’ operating and financial data to Q1 2013 and market developments to mid-2013.

Telecom market overview

The US telecom market has been characterised by increasing demand for faster internet access, for bandwidth-hungry functions such as IPTV and for VoIP as a competitive alternative to wireline. More recently, the growing availability of WiFi, the deployment of LTE and WiMAX networks, together with the rapid uptake of smartphones and devices is propelling the growth of mobile wireless broadband.

Despite favourable stimuli, the US continues to linger relatively low within OECD countries for broadband penetration. Part of the difficulty lies in the absence of effective competition, and in the lobbying prowess of AT&T and Verizon which on a state level have both pressed for legislation to restrict publicly funded broadband networks. Both operators have purposefully promoted their fibre networks while ending upgrades to large swathes of their legacy copper infrastructure. This will leave millions of Americans with no fixed voice service, obliging them to pay over-the-odds for voice and broadband based on LTE.

Mobile market

The US has one of the largest LTE markets in the world. One of the keys to LTE deployment is access to spectrum to keep pace with mobile data traffic which is expected to increase 10-fold by 2016. Operators have endeavoured to secure spectrum through A&M activity and purchases. Much of the growth in LTE adoption has been facilitated by the availability of compatible devices, as well as astute marketing strategies among operators and effective network deployments.

One of the considerations for LTE expansion rests with infrastructure. The use of metrocells and femtocells will be crucial to this process. Verizon’s LTE coverage is expected to match its 3G footprint by the end of 2013, while AT&T now offers LTE coverage to more than 200 million people.

Key telecom penetration by sector – 2010; 2013

Penetration by sector:

2010

2013 (e)

Fixed broadband

27%

32%

Mobile

99%

111%

(Source: BuddeComm)

Market Highlights

  • The total cost for the Electronic Medical Records incentive program over the next decade is estimated at $22.5 billion, with EHR incentive payments of about $14.6 billion made by mid-2013. There are thus far about 395,000 eligible hospital providers out of a pool of about 532,000.
  • Numerous existing gigabit initiatives will become more common in coming years as cities seek to develop a competitive edge to secure employment and economic growth. Thus far there are more than 40 gigabit communities in 14 states, supported by the FCC.
  • T-Mobile’s market position has strengthened since he failed merger with AT&T. It secured a number of mobile licences from AT&T, acquired spectrum from Verizon, improved its financial position following the tower deal with Crown Castle and merged with MetroPCS. These developments have enabled T-Mobile to commit to increasing capex from an average of US$2.7 billion per year to US$4.7 billion in 2013 and around US$3 billion in 2014 and again in 2015, mainly focussed on LTE network development.
  • Georgia’s HB 282 bill, pushed by AT&T and Windstream, aimed to prohibit cities from offering broadband to areas where at least one home in a census block had broadband above 3Mb/. The bill’s defeat should be an encouragement for municipal broadband programs.
  • In mid-2013 the US and Canadian telecom regulators agreed on ten interim spectrum sharing arrangements to promote the deployment of mobile broadband in both countries. Arrangements enable wireless broadband services to coexist along the border, harmonise the countries’ public safety plans and allow licensees to implement their 700MHz narrowband systems.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in the USA. It provides further information on:

  • Market liberalisation and regulatory issues;
  • The impact of the global economic crisis;
  • Telecoms operators – privatisation, acquisitions, new licences;
  • Mobile data market developments in coming years in light of spectrum auctions and new license awards;
  • 3G developments, regulatory issues and technologies including HSPA and LTE;
  • Broadband migration to an FttH architecture;
  • Historical and current subscriber statistics and forecasts;
  • ARPU statistics and forecasts.

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

  • 1. Fibre-To-The-Home Market
    • 1.1 Analysis
    • 1.2 Overview
    • 1.3 FttH network rollout
    • 1.4 Policy and regulation framework
      • 1.4.1 National broadband plan
      • 1.4.2 Network Neutrality regulation
      • 1.4.3 Gigabit City Challenge
    • 1.5 Public (ILEC, CLEC and Municipal) FttH networks
      • 1.5.1 Municipalities
      • 1.5.2 Google Fiber
      • 1.5.3 Other projects
    • 1.6 RBOC FttH roll-out
      • 1.6.1 Verizon
      • 1.6.2 AT&T
      • 1.6.3 CenturyLink
      • 1.6.4 Regulatory considerations
  • 2. Broadband Market
    • 2.1 overview
    • 2.2 Broadband market statistics
    • 2.3 Policy and regulation framework
      • 2.3.1 Network regulation overview
      • 2.3.2 Broadband stimulus package
      • 2.3.3 FCC’s National Broadband Plan
      • 2.3.4 FCC change of chairman – opportunities to advance telecoms
      • 2.3.5 Gigabit City Challenge
      • 2.3.6 Universal Service Fund
      • 2.3.7 Private networks
    • 2.4 Cable broadband
      • 2.4.1 New technologies
      • 2.4.2 Cable broadband statistics
    • 2.5 Digital Subscriber Line (DSL)
      • 2.5.1 DSL overview
      • 2.5.2 Verizon
      • 2.5.3 AT&T
      • 2.5.4 Frontier Communications
      • 2.5.5 DSL statistics
    • 2.6 PLC
    • 2.7 Fixed wireless broadband
      • 2.7.1 Overview
      • 2.7.2 WiFi
      • 2.7.3 WiMAX
      • 2.7.4 Municipal wireless broadband
      • 2.7.5 State deployments
      • 2.7.6 Satellite broadband
    • 2.8 E-services
      • 2.8.1 E-entertainment
      • 2.8.2 E-health
      • 2.8.3 E-government
      • 2.8.4 E-education
    • 2.9 E-commerce, m-commerce and online advertising
      • 2.9.1 E-commerce
  • 3. Mobile Communications
    • 3.1 Market overview and analysis
      • 3.1.1 Public Safety Network
    • 3.2 Regulator support
    • 3.3 Mobile statistics
      • 3.3.1 Market statistics
      • 3.3.2 Mobile carrier statistics
      • 3.3.3 ARPU statistics
    • 3.4 Spectrum developments
      • 3.4.1 800MHz
      • 3.4.2 2GHz
      • 3.4.3 700MHz
    • 3.5 Mobile network operators
      • 3.5.1 Industry body
      • 3.5.2 AT&T
      • 3.5.3 Verizon
      • 3.5.4 T-Mobile
      • 3.5.5 MetroPCS
      • 3.5.6 Sprint Nextel
      • 3.5.7 MVNOs
    • 3.6 Mobile broadband developments
      • 3.6.1 Third Generation mobile (3G)
      • 3.6.2 High Seed Packet Access (HSPA)
      • 3.6.3 4G network investments
      • 3.6.4 Fixed-line backhaul
      • 3.6.5 Long-term Evolution (LTE)
    • 3.7 Mobile data applications
      • 3.7.1 Overview
      • 3.7.2 Mobile internet
      • 3.7.3 Mobile music
      • 3.7.4 Mobile TV
      • 3.7.5 Mobile VoIP
      • 3.7.6 Non-voice messaging
      • 3.7.7 Push-to-Talk (PTT)
      • 3.7.8 Smartphone market
      • 3.7.9 Machine-to-Machine (M2M)
      • 3.7.10 M-payment
      • 3.7.11 M-commerce
  • 4. Forecasts
    • 4.1 Forecasts FttH
    • 4.2 Forecasts Broadband
      • 4.2.1 Overview
    • 4.3 Forecasts Mobile
    • Table 1 – FttH homes passed and connected – 2001 - 2013
    • Table 2 – FttH market share by type of provider – 2006 - 2010
    • Table 3 – Non-RBOC and overall FttH take-up rates – 2002 – 2011
    • Table 4 – Verizon wireline (FiOS) operational data – 2010 - 2013
    • Table 5 - US internet users and penetration – 2000 – 2013
    • Table 6 – Broadband (fixed and fixed wireless) subscribers and penetration – 2000 - 2013
    • Table 7 – Broadband use by demographic profile – 2005; 2008; 2010, 2012
    • Table 8 – Broadband lines by major technology – 2005 - 2010
    • Table 9 – Proportion of broadband subscribers with access to data speeds, by platform – June 2012
    • Table 10 – USA broadband penetration and OECD ranking – 2001 - 2012
    • Table 11 – Population with access to fixed broadband, by speed – Jun 2012
    • Table 12 – US cable industry infrastructure expenditure – 2000 - 2012
    • Table 13 – Top 10 cable MSOs’ coverage, subscribers and penetration by technology – 2010; 2012 - 2013
    • Table 14 – Top cable broadband providers, subscribers – 2011 - 2012
    • Table 15 – Top cable providers, market share – 2012
    • Table 16 – US cable modem subscribers and annual change – 2000 - 2012
    • Table 17 – Subscribers for top cable modem providers – 2006 - 2012
    • Table 18 – Average DSL and FttH traffic by subscriber (GB/month) – 2012
    • Table 19 – Average traffic use by subscriber profile – 2012
    • Table 20 – Top DSL providers, market share – 2011
    • Table 21 – Verizon wireline (FiOS) operational data – 2010 - 2013
    • Table 22 – AT&T operational data – 2011 - 2013
    • Table 23 – Frontier Communications revenue – 2008 - 2012
    • Table 24 – Frontier Communications customers by sector – 2011 - 2012
    • Table 25 – DSL subscribers – 2000 - 2012
    • Table 26 – DSL subscribers by major carrier – 2007 - 2013
    • Table 27 - Online US video usage – 2011
    • Table 28 - Ten largest US social networking sites and forums – 2011
    • Table 29 - Fastest growing US retail e-commerce categories – 2009 – 2010
    • Table 30 - Online retail sales – 2003 – 2013
    • Table 31 – Prepaid subscribers and market share – 2008 - 2013
    • Table 32 – Mobile market revenue, roamer revenue, ARPU – 2000 - 2012
    • Table 33 – Mobile subscribers – 2002 - 2013
    • Table 34 – Mobile traffic – 2008 - 2012
    • Table 35 – Average local monthly bill and average local call length – 2000 - 2012
    • Table 36 – AT&T wireless financial data – 2009 - 2013
    • Table 37 – AT&T wireless financial data by sector– 2010 - 2013
    • Table 38 – AT&T wireless subscribers – 2002 - 2013
    • Table 39 – Verizon wireless financial data by sector– 2010 - 2013
    • Table 40 – Verizon wireless subscribers – 2005 - 2013
    • Table 41 – T-Mobile wireless subscribers – 2003 - 2013
    • Table 42 – T-Mobile financial data – 2009 - 2013
    • Table 43 – T-Mobile USA subscribers – 2009 - 2013
    • Table 44 – T-Mobile USA ARPU – 2009 - 2013
    • Table 45 – T-Mobile USA financial data – 2009 - 2013
    • Table 46 – MetroPSC financial data – 2007 - 2012
    • Table 47 – MetroPSC financial data – 2007 - 2012
    • Table 48 – Sprint Nextel financial data – 2009 - 2013
    • Table 49 – Sprint Nextel subscribers – 2010 - 2013
    • Table 50 – Sprint Nextel blended ARPU – 2010 - 2013
    • Table 51 – Mobile data traffic – 2011 - 2012
    • Table 52 – Verizon Wireless LTE device sales – 2011 - 2012
    • Table 53 – Wireless data revenue – 2009 - 2013
    • Table 54 – Messaging traffic (SMS, MMS) – 2009 - 2012
    • Table 55 – Tablets, smartphones in use – 2009 - 2012
    • Table 56 – Handset market share by manufacturer – 2011 - 2012
    • Table 57 – Handset sales by manufacturer – 2011 - 2012
    • Table 58 – Handset market share by platform – 2012 - 2013
    • Table 59 – M2M connections – 2009 - 2016
    • Table 60 - Mobile banking growth by country – 2010 – 2011
    • Table 61 – Forecast FttH homes passed, connected and penetration – low growth scenario – 2011 - 2016
    • Table 62 – Forecast FttH homes passed, connected and penetration – high growth scenario – 2011 - 2016
    • Table 63 – Forecast broadband subscribers and penetration – lower growth scenario – 2010 - 2016
    • Table 64 – Forecast broadband subscribers and penetration – higher growth scenario – 2010 - 2016
    • Table 65 – Forecast mobile broadband users and mobile services revenue growth – lower growth scenario – 2011 - 2016
    • Table 66 – Forecast mobile broadband users and mobile revenue growth – higher growth scenario – 2011 - 2016
    • Chart 1 – FttH homes passed and connected – 2001 – 2013
    • Chart 2 – Non-RBOC and overall FttH take-up rates – 2002 – 2011
    • Chart 3 – Broadband (fixed and fixed-wireless) subscribers and penetration – 2000 – 2013
    • Chart 4 – US cable modem subscribers and annual change – 2002 – 2012
    • Chart 5 – Verizon wireline (FiOS) operational data – 2010 – 2013
    • Chart 6 – DSL subscribers – 2002 – 2012
    • Chart 7 – AT&T wireless financial data – 2009 – 2013
    • Chart 8 – Verizon wireless financial data by sector– 2010 – 2013
    • Chart 9 – Verizon wireless subscribers – 2010 – 2013
    • Chart 10 – T-Mobile USA subscribers – 2009 – 2013
    • Chart 11 – T-Mobile USA financial data – 2009 – 2013
    • Chart 12 – Sprint Nextel financial data – 2009 – 2013
    • Chart 13 – Sprint Nextel operating data – 2010 – 2013
    • Exhibit 1 – Status of RBOC fibre network build out
    • Exhibit 2 – Cable broadband drives cable VoIP

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