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2/20/2015
In Telecom, Wireless Still the Key Industry Outlook NASDAQ.com
In Telecom, Wireless Still the Key Industry Outlook
By Zacks.com, September 11, 2014, 03:56:00 AM EDT
The U.S. telecommunications industry is currently evolving around five broad factors. These include: (i) the increasing traction of wireless networks in the telecom industry and the consequent popularity of spectrum (ii) the projection of aggressive highspeed fiberbased network expansion, especially for video/TV offerings (iii) consolidation within the industry which is likely to continue mainly on airwaves shortage and attainment of economies of scale (iv) innovative product launches are expected in areas of mCommerce, virtualization and cloudbased technology, highspeed metro Ethernet, to name a few and (v) ample scope for expansion as nearly a fifth of rural American households lack broadband access, as per the Federal Communications Commission. Telecom operators globally generated approximately $2 trillion in revenues in 2013, highlighting slight improvement from $1.9 trillion revenues recorded in 2012. According to a research report by Telecommunications Industry Association (TIA), the global telecommunications industry spending rose 5% in 2013 to $5.1 trillion. Notably, the U.S. telecom industry spending rate (6.6%) had surpassed the global spending rate (4.5%) in 2013. Interestingly, this reverses a longterm telecom spending pattern that prevailed throughout the world. The TIA has also estimated that the U.S. wireless operators will spend $36.3 billion on network infrastructure and equipment in 2014, signifying an improvement of 8% year over year. Wireless Remains the Key Despite the massive growth in fibertothehome networks, we expect wireless networks to provide a major impetus to the telecom industry. Wireless network standards are continuously evolving around the globe to...