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Summary:

U.S. carriers will make more money from selling wireless services than they do from wireline services starting sometime in 2014, according to estimates provided by research firm Atlantic-ACM. The company, which tracks a slew of wireless and wireline data, issued a report today that noted the […]

U.S. carriers will make more money from selling wireless services than they do from wireline services starting sometime in 2014, according to estimates provided by research firm Atlantic-ACM. The company, which tracks a slew of wireless and wireline data, issued a report today that noted the growing dominance of wireless, which for the first time this year beat out wireline revenues on the retail side. That’s a lot of lost landlines. However, when you add in wholesale wireline data services, such as IP backhaul or corporate networking, the wires still generate more dollars.

However, by 2014 wireless service revenue will outpace all wireline sales, according to the group’s estimates. Wireline revenue includes the sale of broadband and voice products from telcos and cable companies, while the wireless sales only include service revenue from cellular providers. Atlantic-ACM CEO Dr. Judy Reed Smith said prepaid growth and the addition of data plans by prepaid carriers will help drive these sales. However, while the two largest wireline providers also have wireless businesses, this chart shows why Qwest and the new CenturyLink are hot for consolidation and why the cable guys are hot for wireless.

acm

  1. What are the assumptions here? Does this assume current wireless plan costs will go down because volume/demand will increase or do these numbers reflect the current “raping” of consumers with ridiculously high monthly fees for paltry 5Gb caps?

    Following Moore’s law, the cost of bandwidth should fall by 50% every six months be we all now wireless telcos do everything they can to act in a monopollistic fashion and artificially delay this.

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  2. @SD,

    Why should bandwidth follow the cost curve of Moore’s Law? Moore’s Law concerns the number of transistors on an integrated circuit.

    The bandwidth access/cost problem involve many elements oftentimes needing compound semiconductor material systems to operate — this is very different than the system described in Moore’s Law — just a single IC constructed in a single material system.

    Note that I am not defending the practices of wireless telcos, but I suggest that the problem is more complex.

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  3. [...] Stat Shot: Carriers to Soon Make More Money From Mobile [...]

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