Fixed broadband revenues are looking set to beat voice next year, according to the latest research from Ovum.
The study entitled: Global Fixed Voice and Broadband Market Outlook: 2011–16, has shown how consumer landlines are in decline, dropping by around 18 percent over the coming five years however, broadband is going to continue its upward trend.
The latest figures are reflected in the number of fixed phone and broadband lines and the analyst firm predicts that this is the last year that consumer fixed voice will have the edge over broadband with revenue reaching $176bn and $167bn respectively. Next year, however, this trend will swap over and broadband calls will be ahead of voice with a $180.5bn worldwide market share, while voice calls will be hitting around $158.6bn.
Ovum also predicts that fixed telephone lines will fall from 685 million worldwide in 2011 to 560 million in 2016. By contrast, fixed broadband lines will hit 776 million by 2016, which is a seven percent growth over the next five years.
Commenting on the research Ovum analyst Charlie Davies said: “Our research reveals the extent to which the fixed voice telecoms market is shrinking and just how important broadband has become to the telecoms industry.”
“Next year, telcos will generate more consumer revenues from fixed broadband than from telephone lines for the first time. This will be driven by consumers continuing to shun their landline in favour of the mobile phone and the greater need for fixed broadband in the home to meet the demands of increasing video traffic, more applications and content in the cloud and more connected devices. The rise of internet-based voice services such as Skype will also play a significant role.”
In addition, the report said that entertainment (TV, gaming and music) represents a significant opportunity for telcos to drive revenue growth, particularly in the form of on-demand content but this was dependent on how telcos embrace branding opportunities.
“Broadband revenue growth alone will not be sufficient to offset the decline in fixed voice revenues due to the investment needed for next-generation access networks and software. This underlines the need for telcos to find a role and further revenues from new service lines,” added Davies.