US: Competition for Data Services to Intensify as Operators Continue to Invest in Next-Generation Technologies

2017-04-07
Price :
Published : Apr-2017
No. of Pages : 36

US: Competition for Data Services to Intensify as Operators Continue to Invest in Next-Generation Technologies

Summary

Telecom services revenue in the US is estimated to grow at a CAGR of 1.2% during 2016-2021, driven by growth in fixed broadband and mobile data revenue. Mobile data will continue to remain the largest revenue-contributing segment through 2021 and is estimated to grow at a CAGR of 4.0% during 2016-2021, majorly driven by operators’ investments in 4G network expansions and attractive data packages to stimulate data adoption.

The top two operators, Verizon and AT&T, accounted for 47.2% of overall telecom service revenue in 2016. Operators are focusing on an integrated service strategy, along with network upgrades and expansion to meet the rising demand for data services. 4G technology had the largest share, holding 69.0% of the mobile market in 2016. 4G subscriptions are estimated to reach 441.3m by 2021, up from 284.5m in 2016. 4G subscriptions will grow at a CAGR of 8.8% during 2016-2021, owing to operators’ continuous focus on enhancing their network coverage and offering attractive bundled price plans.

In 2016, the US was the largest telecom service market across the world, reaching US$422.4bn (or 2.3% of GDP) in revenue. Going forward, we forecast the US telecom market to reach $447.8bn by 2021. The growth will be driven by operators’ investments in expansion of LTE/LTE-A and fiber networks. Mobile data, being the major driver of growth, generated revenue of $128.4bn in 2016. Rising adoption of smartphones, connected devices, and attractive mobile data price plans and packages will boost mobile data usage.

The total number of fixed access lines declined by 2.4% over 2015-2016 to reach 170.3m, as a result of fixed-to-mobile substitution. The number of fixed access lines is expected to decline to 161.1m by 2021. Cable will overtake PSTN lines in 2018; FWA and FTTH/B are expected to show robust growth during 2016-2021 with a CAGR of 6.2% and 3.0%, respectively. Growth will be driven by operators’ investments in fiber technologies.

Over the next five years, operators should seize opportunities arising from increased demand for data including video services. Operators are focusing on enhancing their service portfolio through network expansion and deployments of faster-speed network technologies, such as 5G, DOCSIS 3.1, NG-PON2, which presents opportunities for vendors and investors.

The report “US: Competition for Data Services to Intensify as Operators Continue to Invest in Next-Generation Technologies” provides an executive-level overview of the telecommunications market in the US today, with detailed forecasts of key indicators up to 2021 and provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband, and mobile, as well as a review of key regulatory trends.

In depth, it provides the following –
– The regulatory environment and trends: A review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more.
– A demand profile: Analysis as well as historical figures and forecasts of service revenue from the fixed telephony, broadband, mobile voice, and mobile data markets.
– Service evolution: A look at changes in the breakdown of overall revenue between the fixed and mobile sectors and between voice, data and video from 2016 to 2021.
– The competitive landscape: An examination of key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months.
– In-depth sector analysis of fixed telephony, broadband, mobile voice, and mobile data services: A quantitative analysis of service adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period.

Companies mentioned in this report: AT&T, Verizon Communications, Comcast, Sprint, T-Mobile, DirecTV, Time Warner, Dish Network, CenturyLink.

Scope

– The overall telecom service revenue in the US will grow at a CAGR of 1.2% during 2016-2021, mainly driven by growth in the mobile data segment.
– Mobile revenue will account for 46.2% of total telecom revenue in 2021; mobile data will be the major contributing segment over 2016-2021.
– 4G will be the most adopted mobile technology through 2021, as operators continue to focus on expanding their 4G/LTE, LTE-A network coverage and deployment of advanced technologies to deliver faster Internet speeds.
– The top two operators, AT&T and Verizon, accounted for 47.2% share of overall service revenue in 2016.
– Operators will continue to shift their focus toward connected devices and expanding their stand-alone service business into new business models, such as mobile video, to increase revenue and fuel growth. Moreover, operators are focusing on development and testing of advanced technologies to support 5G deployment in the near future.

Reasons to buy

– This Country Intelligence Report offers a thorough, forward-looking analysis of the US telecommunications market, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
– Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in the US mobile communications, fixed telephony and broadband markets, including the evolution of service provider market shares.
– With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
– The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in the US telecommunications market.
– The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in the US.

Filed in: Information Technology
Publisher : GlobalData
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