WASHINGTON-Sales of wireless service and equipment helped boost telecom industry spending 8.9 percent to an estimated $856.9 billion last year, the Telecommunications Industry Association said.
“The statistics in our new report reveal the telecom industry is expanding once again. The U.S. market is back on an upward path and the international markets are growing even faster. With revenues from international markets more than double that of the U.S., the global marketplace is clearly where companies must compete,” said TIA President Matthew Flanigan.
In its 2006 Telecommunications Market Review and Forecast, TIA said the sale of mobile phones and other wireless devices was the principal driver of U.S. telecom growth in 2005. According to the telecom vendor trade group, revenues from sales of wireless devices reached $15 billion last year, a 22.6-percent increase over 2004.
TIA said U.S. telecom industry growth is expected to climb 10.2 percent in 2006, reaching $944.7 billion. Beyond that, the trade group predicted industry will grow at a projected 9 percent compound annual growth rate from 2006 to 2009, reaching $1.2 trillion.
The report said total international communications spending, excluding the United States, hit $1.8 trillion in 2005, up 11.4 percent over 2004. The growth was fueled by double-digit increases in wireless transport services, Internet access, public network equipment and professional services, the report stated.
The Middle East/Africa was the fastest-growing region in 2005, with an 18.4-percent advance to $66.7 billion. Overall international telecommunications spending is expected to reach $2.7 trillion in 2009, growing at a 10.4 percent compound annual growth rate from 2006 to 2009, the report said.
