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.