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Corporate Cell Bills Running High

JANUARY 22, 2007

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A study released by Insight Research shows that fully one-third of telecommunications bills at US corporations are for wireless services.

The "Telecom Services in Vertical Markets 2006-2011" report reveals that in 2006 total US business spending on telecommunications services reached just over $132 billion, and by 2011 it is forecast to grow to nearly $154 billion.

US Business Telecommunications Services Spending, 2006 & 2011 (billions)

Wireless service revenues derived from businesses are expected to grow at a compounded rate of 8% annually from 2006 to 2011.

"The price wars we've seen over the past six years are over, but revenue growth in wireline services is not forecasted to bounce back," said Robert Rosenberg, president of Insight. "Wireline revenue growth will be constrained by the growth of wireless spending, though that increase is going to be uneven across the various business sectors."

The majority of wireless revenues will come from four major markets:

  • Construction
  • Financial, insurance and real estate
  • Professional business services
  • Transportation
 

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