VoIP Continues Onslaught On Fixed-Line, With Cable Operators Leading The Way

August 2006 | Market Trend Analysis

BMI estimates that the US fixed-line market grew by 0.4% in 2005, giving a total user base of nearly 178.5mn and penetration of 60.1%. However, subsequent growth in the three months after, suggests a decline, with BMI estimating a marginal fall of 0.2% in Q106. Looking ahead, it is our belief that teledensity will continue to fall to 59.4% as of YE06, and that the decline will accelerate from 2007 onwards. This is in line with expectations that ADSL and mobile substitution are to become more widespread, with the broadband market in particular demonstrating strong growth of 26% in 2005,

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