Thursday, March 22, 2012

TIA Industry Forecast Shows Relationship Between Networks and Business Models

There are some interesting conclusions one might draw about the relationship between “networks” and “business models” in the latest communications industry revenue forecast published by the Telecommunications Industry Association.

Consider that U.S. wireless revenue in 2012 will be about $335 billion, while fixed network voice revenue will be about $132 billion, with an additional $38 billion in broadband access revenue and $6 billion in television revenue, for a total of about $176 billion in fixed network revenue.

One obvious conclusion about the implications of networks for business models is that whether a network is wireless or fixed, a ubiquitous network, serving virtually all potential users--business or consumer--must, in fact, sell to both consumers and businesses.

There will be, in 2012, about 59 million consumer landline voice accounts in service, compared to 57 million business lines in service. A network that must serve virtually every house and business must sell to all those customer segments.

But other types of networks enable different business models.

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