USA - Telecoms, Wireless and Broadband - Overview and Analysis - 2009-2010

Synopsis

Archived report: this report was archived in December 2010 and has not been updated.

The US telecommunications markets continue to converge towards a triple-play model of bundled-voice, TV and broadband data services. The Regional Bell Operating Companies, traditionally landline voice operators, are now key providers of broadband through DSL and increasingly through their fibre optic network deployments. Their high-bandwidth fibre networks have also facilitated their entry into the lucrative pay TV market with an IPTV offering.

Meanwhile the cable companies, traditionally TV providers, still retain the lead in terms of broadband subscriber numbers, and more recently have been making significant strides into the voice market with low-cost VoIP services. VoIP is also making headway in the mobile market, and is expected to account for a major share of mobile voice traffic within five years. The deployment of WiMAX and the commitment to LTE 4G networks brings the promise of new mobile digital media developments on open access networks. Thus, while traditional landline voice revenues continue to fall, mobile data revenues grow apace.

The economic downturn has constrained growth in the telecommunications industry, although most sectors remained in positive growth territory throughout. Perhaps aided by the recession, the Obama administration and the reform-minded FCC Chairman are aiming to oversee regulatory reform in favour of greater competition in those sectors in which a telco-cable duopoly persists.