Twenty-five years ago, mobile telephones were exotic status symbols. By the end of 2005, there will be over 1.8 billion subscribers worldwide depending on mobile wireless telephones, as we note in Table I-1. Affordable, reliable, and ubiquitous wireless service has profoundly altered the way people access the global communications network.

On a worldwide basis, wireless services are growing much faster than wireline services. INSIGHT's research suggests that wireless revenues will 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—approaching a trillion dollar market by the close of the forecast period.

The modest growth of telecommunications services revenue enjoyed by carriers worldwide during 2004 and 2005 is predicted to continue in 2006 and 2007. Three quarters of a trillion dollars flowed into the telecom industry during the tech bubble of the late 1990s, but after several brutal years watching telecom industry fortunes being driven downward—with the attendant layoffs, bankruptcies, and even a few accounting scandals—in 2005 the telecommunications industry turned the corner.

INSIGHT Research's carrier revenue projections by geographic region are provided in Table I-1. Worldwide carrier revenues are predicted to grow from under $1.2 trillion in 2005 to just over $1.5 trillion in 2010. While the overall compound annual growth rate (CAGR) is 5.9 percent, there are notable regional differences.

North America (NA) has the slowest growth rate at 3.9 percent annually, but maintains its position as the region with the largest telecommunications services revenue in 2005. As the most mature telecom services market, NA growth is most dependent on new services as opposed to subscriber growth. Europe/Middle East/Africa (EMEA) exhibits a slightly higher growth rate at 4.5 percent per year, due to growth in the wireless market and growth from less developed sub-regions of Eastern Europe, the Middle East, and Africa.

The faster-growing regions are Latin America and the Caribbean (LAC) and Asia/Pacific (AP). LAC is dominated by the fast-growing economies of Mexico and Brazil. Many of the countries in the LAC region have a combination of a rapidly expanding middle class and increased privatization of key industries. The resulting pent-up demand for telecommunications services, much of which is satisfied by wireless services, is reflected in its high CAGR relative to the worldwide composite.

The AP region is experiencing the highest five-year growth overall, at 9.3 percent, and will be the largest telecommunications revenue producer, overtaking NA by 2007. The sheer size of its underserved populations,

Market Segmentation

Worldwide Telecommunications
North America
North American Residential Connections by service type
North American SME broadband Connections by Service type
US Broadband Switches Compared with Increase in Throughput
US Broadband Switch Revenue
Europe/Middle East
EMEA Broadband Wireline Revenue
Asia/Pacific
Asia-Pacific Broadband Wireline Revenue
Latin America/Caribbean
LAC Broadband Wireline Revenue
Worldwide Gateway Revenue Forecast
Total ADM Revenue
Total SONET/SDH Terminal Market
Worldwide Optical Components Market
Fiber Deployment Percentage of Total by Region
2005 and 2010 Distribution of Global Carrier Revenue by Region
Worldwide Telecom Revenue Forecast by Services Category, 2005-2010
N. American Broadband Wireline Revenue By Market Segment 2005-2010

Operations Support Systems
Worldwide OSS Sales Revenue, by Region
North America
Europe/Middle East
Asia/Pacific
Latin America/Caribbean
Worldwide OSS Sales Revenue Wireline vs. Wireless
Worldwide OSS Sales Revenue by Service Type
Worldwide OSS Sales Distribution by Region

Wireless
Revenue for 2G,2.5G, and 3G Market Segments by Region
New Wireless Data Services Usage on Average Revenue per user
Revenue for 2G, 2.5G, and 3G Market Segments by Region,

High-Speed Access
North American Broadband Connections by Access and Customer Type,
Traditional
DSL
Cable Modem
FBW
Total World Broadband Connections by Service Type,
US LEC Access Line Quarterly Additions,
US Wireline Access Annual Reductions,
Online Computers: Residences vs. SMEs,
Online Residences, Broadband vs. Narrowband Connections,

IP Telephony
NA IP Applications Services Revenues by Type,

Streaming Media
US Total Streaming Media Market,

Wi-Fi
Total Worldwide WiFi Revenue,

Enterprise Telecommunications Market
Capacities of 64 Kbit/s, T1, and T3 Circuits
Total Toll-Free Revenue,
Legacy Centrex Installed Base,
Comparison of Total Premises vs. Centrex Installed Base
Total Addressable Market: Premises Equipment Revenue

Worldwide Telecommunications
North America
North American Residential Connections by service type -
North American SME broadband Connections by Service type -
US Broadband Switches Compared with Increase in Throughput,
US Broadband Switch Revenue,
Europe/Middle East
EMEA Broadband Wireline Revenue,
Asia/Pacific
Asia-Pacific Broadband Wireline Revenue,
Latin America/Caribbean
LAC Broadband Wireline Revenue,
Worldwide Gateway Revenue Forecast,
Total ADM Revenue,
Total SONET/SDH Terminal Market,
Worldwide Optical Components Market,
Fiber Deployment Percentage of Total by Region,
2005 and 2010 Distribution of Global Carrier Revenue by Region
Worldwide Telecom Revenue Forecast by Services Category,
N. American Broadband Wireline Revenue By Market Segment
Operations Support Systems
Worldwide OSS Sales Revenue, by Region,
North America
Europe/Middle East
Asia/Pacific
Latin America/Caribbean
Worldwide OSS Sales Revenue Wireline vs. Wireless,
Worldwide OSS Sales Revenue by Service Type,
Worldwide OSS Sales Distribution by Region,

Wireless
Revenue for 2G,2.5G, and 3G Market Segments by Region
New Wireless Data Services Usage on Average Revenue per user
Revenue for 2G, 2.5G, and 3G Market Segments by Region,

High-Speed Access
North American Broadband Connections by Access and Customer Type,
Traditional
DSL
Cable Modem
FBW
Total World Broadband Connections by Service Type,
US LEC Access Line Quarterly Additions,
US Wireline Access Annual Reductions,
Online Computers: Residences vs. SMEs,
Online Residences, Broadband vs. Narrowband Connections,

IP Telephony
NA IP Applications Services Revenues by Type,

Streaming Media
US Total Streaming Media Market,

Wi-Fi
Total Worldwide WiFi Revenue,

Enterprise Telecommunications Market
Capacities of 64 Kbit/s, T1, and T3 Circuits
Total Toll-Free Revenue,
Legacy Centrex Installed Base,
Comparison of Total Premises vs. Centrex Installed Base
Total Addressable Market: Premises Equipment Revenue