The worldwide communications infrastructure has already started moving gradually and inexorably in the direction of ubiquitous broadband access and transport, an adoption that will completely revamp the meaning of what constitutes a telecommunications service.

Table I-1 shows the stark contrast between broadband and narrowband wireline and wireless services worldwide. Broadband wireline revenues are growing at a 10.5 percent compound annual growth rate (CAGR) over the forecast period, while narrowband wireline service revenues are actually declining by almost 1.5 percent over the same period.

An important worldwide trend is the much higher growth rate of wireless service in comparison to wireline service. Wireless revenues grow from 46.3 percent of all telecommunications services revenues in 2005 to 55.6 percent in 2010—a virtual flip within the five-year period. Wireless service revenues are growing at 9.9 percent CAGR over the forecast period, while wireline service, which includes both broadband and narrowband services, grows much more modestly at 2.0 percent.

Table I-1 Worldwide Telecom Revenue Forecast by Services Category, 2005-2010 ($Millions)
2005 2006 2007 2008 2009 2010 CAGR
Broadband - Wireline 151,602 170,604 197,186 211,572 230,647 250,307 10.5%
Narrowband - Wireline 476,160 467,453 452,593 451,282 446,987 442,638 -1.4%
Broadband - Wireless 8,389 15,997 30,626 44,267 64,034 92,700 61.7%
Narrowband - Wireless 533,068 588,591 645,079 696,508 736,578 774,233 7.8%
Total 1,169,221 1,242,645 1,325,484 1,403,629 1,478,246 1,559,877 5.9%

Worldwide, broadband service providers of all stripes continue to try to create viable business models in order to deliver high-speed broadband—leveraging Internet protocol (IP) packet delivery and management to create and deliver new services. Overseas carriers are rolling out broadband on a mass scale, targeting consumers and small businesses, and bundling new premium services like Voice over IP (VoIP), virtual private network (VPN), video, games, and entertainment. This worldwide IP-based applications services market is beginning to take off. The architecture of and market for next-generation enhanced services is also beginning to take shape.

Yet even as the industry focuses much of its energy on creating the infrastructure to support a new generation of telcom services, actual revenue contributions made by IP services represent just 0.9 percent of all global wireline and wireless telecommunications service revenues forecasted for 2006 and just 5.7 percent of those forecasted for 2011. Thus, while the attention of the industry focuses on enabling a next generation of services, the revenue impacts remain modest throughout the next several years.

Traditional carriers see IP application platforms as a means to beginning their slow migration to fully-convergent IP-based networks and services. Some view the highly personalized services enabled by IP as the ultimate “sticky” applications that will stem the tide of customer churn. Other carriers desire new, affordable service applications that will bring additional revenue streams. Every carrier is looking for new ways to enhance their service suites, which are rapidly becoming commoditized.

Interestingly, wireless carriers seem to be making headway when it comes to the adoption of new architectural and service paradigms. Fundamentally, wireless operators have had more experience with and greater control over the content in their networks and have solid billing platforms, both of which assure content providers of reliable and stable revenues from content provided to wireless subscribers. Content providers are, therefore, more comfortable with the wireless domain.

Wireline carriers also expect operational and infrastructure savings from deploying new IP-based services. Many incumbent carriers are choosing to initially implement IP-based services on an overlay network. Taking this approach, carriers do not have to replace circuit-switched network elements, which represent sunk costs and have minimal ongoing operational expenses. In an overlay network scenario, the packet-switched network is isolated from the circuit-switched network, and the two are connected via a gateway. Web-based applications can control the public switched telephone network (PSTN) through this gateway. This architecture preserves the wireline carrier's investment while reducing risk as new opportunities are explored and implemented.

Insight has examined the following six services which are presently being implemented in an IP infrastructure environment....

Market Segmentation

Telecommunications Industry Markets
By Geography
North America
Europe/Middle East/Africa
Latin America/Caribbean
Asia/Pacific
Global Carrier Revenue by Region, ($Millions)
2005 and 2010 Distribution of Global Carrier Revenue by Region
Service Provider Revenue By Provider Type ($Millions)
Worldwide Telecom Revenue Forecast by Services Category
Broadband Service Revenue Distribution by Service Type
North American Broadband Wireline Revenue
EMEA Broadband Wireline Revenue ($Billions)
Asia Pacific Broadband Wireline Revenue ($Billions)
LAC Broadband Wireline Revenue ($Billions)
Wireless Subscribers by Global Region 2002-2011 (Thousands)
Distribution of Wireless Networks by Technology Type
Wireless Network Deployment Status, 2005 and 2006
Revenue for 2G, 2.5G, and 3G Market Segments by Region
Regional Subscriber Growth 2002-2005 (Millions)
Total Wireline and Wireless BBand Narrowband Revenues
Broadband Services Revenue Distribution

Next Generation Network Infrastructure
US Broadband Switches Compared with Increase in Throughput
US Broadband Switch Revenue ($Millions)
Wireline SS7 Queries 2003-2008 (Thousands)
Impacts of VoIP on International Telecommunications Services
Worldwide Gateway Revenue Forecast ($Billions)
Total ADM Revenue, 2003 and 2008 ($Millions)
Wavelength Services Revenue Totals ($Millions)
Total SONET/SDH Terminal Market ($Billions)
Total DWDM Sales ($Billions)
Fiber Deployment by Region, 2000-2008 (Gigameters)
Worldwide Optical Components Market ($Billions)
Fiber Deployment by Region, 2000-2008 (Gigameters)
Fiber Deployment Percentage of Total by Region, 2000 vs. 2008

Access Network
US Access Line Trends: Residential and Business (Millions)
US Access Line Estimates, Residential and Business (Millions)
US Res Prim Access Line Declines by Wireless and BB VoIP
BB Penetration by Technology in Top 20 Economies, 2005
Broadband Penetration as a Percentage of Households by Region
Worldwide Broadband Lines by Region, 2006-2011 (Millions)
Cell Phone Penetration as a Percentage of All Phone Subscribers,
Wireline vs. Mobile Phone Growth 1995-2004 (Millions)
Number of Cons BB Lines with Wireless Home Net By Region

OSS & BSS
Worldwide OSS Sales Revenue, by Region
North America
Europe/Middle East/Africa
Latin America/Caribbean
Asia/Pacific
Worldwide OSS Sales Revenue Wireline vs. Wireless
Worldwide OSS Sales Revenue by Service Type
Worldwide Professional Services

Present & Future Services
Growth in US Subscribers All Segments (Millions) 2005-2010
Growth in Wireless Subscriber (Millions)
Growth in ILEC Subscribers by Line Type (Millions)
Growth in CLEC Subscribers (Millions)
Growth in IXC Subscribers (Millions)
Growth in Cable Subscribers by Service Type (Millions)
Growth in Other VoIP Subscribers (Millions)
International VoIP Traffic By Region
North American Inbound MOUs with VoIP (in Millions)
North American Outbound MOUs with VoIP (in Millions)
Caribbean Inbound MOUs with VoIP (in Millions)
Caribbean Outbound MOUs with VoIP (in Millions)
Central America Inbound MOUs with VoIP (in Millions)
Central America Outbound MOUs with VoIP (in Millions)
Latin America Inbound MOUs with VoIP (in Millions)
Latin America Outbound MOUs with VoIP (in Millions)
Europe Inbound MOUs with VoIP (in Millions)
Europe Outbound MOUs with VoIP (in Millions)
Asia Inbound MOUs with VoIP (in Millions)
Asia Outbound MOUs with VoIP (in Millions)
Africa Inbound MOUs with VoIP (in Millions)
Africa Outbound MOUs with VoIP (in Millions)
Oceania Inbound MOUs with VoIP (in Millions)
Oceania Outbound MOUs with VoIP (in Millions)

Enterprise Markets
Total Private Line Revenue ($Millions)
Managed Wide Area Network Endpoints by Type
Internet Traffic and IT Staffing
US Managed Services Revenues ($Billions)
Total US Telecom Wireline Market, 2005 and 2010
Top-Tier Expenditures for Telecom Wireline Services
Total US Telecom Wireless Services, 2005 and 2010
Top-Tier Expenditures for Telecom Wireless Services
Total US Healthcare Telecom Service Revenues
Worldwide Grid Spending ($Billions)