[July 26, 1999]

Demand For Enhanced Features Drives Growth In Local Wireline Business Telecommunications Services Industry

More than 1,000 companies participated in the local wireline telecommunications services market in 1998. The Telecommunications Reform Act of 1996, coupled with a growing number of businesses demanding enhanced service features, is stiffening competition in both the business voice and data services markets.

Total revenues for the U.S. local wireline business telecommunications services market were estimated at $60 billion in 1998, according to new strategic research from Frost & Sullivan. U.S. Local Wireline Business Telecommunications Strategies is Frost & Sullivan's examination of the markets for both local wireline business voice services and local wireline business data services. Frost & Sullivan has broken down the local business voice services market into basic local voice services and additional local voice services. Likewise, the breakdown of the U.S. local wireline business data services market is segmented by local business data services and local business high-speed Internet access service.

Overall market growth for local wireline business telecommunications services is expected to be propelled by an increasing number of voice and data lines, the emergence of packet switched networks, and the increasing complexity of business applications. Frost & Sullivan's analysis projects the compound annual growth rate for these services from 1998 to 2005 to be approximately 8.6 percent. When analyzed by segment, the data services market will achieve the highest growth rate at about 13.5 percent, while the voice services market is expected to expand at about 7.5 percent compounded annually.

"The local wireline business voice services market, which includes traditional voice and enhanced services, generated revenues of approximately $50.3 billion in 1998," says Frost & Sullivan Telecommunications Industry Analyst Agatha Poon. "As businesses continue to expand operations and demand more enhanced services to ensure high efficiency, the market for local wireline business voice services will grow rapidly. An increasing number of access lines, growth of computer telephony integration (CTI) and the implementation of number portability are factors which will contribute to the future growth of this market."

Driving the U.S. market for local wireline business data services is the increased mobility of company employees, which stimulates the use of data services. The availability of a universal standard and advances in multiplexing technology are also serving as primary drivers for market growth in the area of data services. Voice compressing and dense wave multiplexing technology are a couple of examples of the types of technology which should assist in the increasing business data services usage.

This telecommunication industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the local wireline business telecommunications services market.

Information on purchasing the full repor visit the company's Web site.

[ Back To TMCnet.com's Homepage ]