Virtual Explosion Coming
According to the Telecommunications Industry Association, total spending on Internet access in the international markets reached $113 billion last year and is expected to grow to $139 billion by the end of this year.
That amount, though, will seem like a pittance shortly because TIA projects the spending will continue to climb by a compounded 18 percent annual growth rate over the next four years and will top $221 billion in 2009.
Those real dollar figures for the expansion of the virtual world are found in the 2006 Telecommunications Market Review and Forecast, a study that the leading trade group for the communications technology and information industries conducts each year.
But the projected increased spending on broadband equipment and access won’t only be driven by the world’s private sectors, as the report cites governments as actively supporting expansion efforts that will send record amounts of revenue to high-tech equipment manufacturers and broadband providers in the coming years.
The report also tapped
But despite having South Korea and Japan occupying two of the top five markets and with China having 35 million broadband subscribers last year, the TIA report ranked the Asia/Pacific region as fourth in access last year. It trailed
The report goes on to project that
TIA estimated that global spending on broadband access will reach $81 billion this year, up from $57 billion last year, and climb to $156 billion in 2009. The four-year increase in access spending is a compounded 28 percent annual growth rate.
In contrast, revenue to dial-up services will grow at a slower pace, only 4.2 percent, over those years and will go from $55.7 billion last year to $65.5 billion in 2009.
As the Internet market expands across international markets and online traffic grows, the infrastructure will need to expand. TIA projects that worldwide telecom equipment revenue will increase from last year’s total of $276 billion to more than $379 billion in 2009, an annual compounded growth rate of slightly more than 8 percent.
To obtain a copy of the report, go to www.tiaonline.org or call (703) 907-7074.