by Freedonia Focus Reports Team
May 17, 2024
Gains in wireless largely offset by declines in wired services
Cleveland, OH, May 17, 2024 — US telecommunication services revenues are forecast to see marginal average annual growth in nominal dollars through 2028, according to Telecommunication Services: United States, a report recently released by Freedonia Focus Reports. Providers are expected to benefit from wireless consumer upgrades to 5G services, the rollout of fixed internet connections using the 5G network, and the need for faster internet speeds at residences and businesses. However, consumers are increasingly forgoing home voice and cable television services, constraining revenues. Many consumers rely on cellular voice plans and internet-based video streaming services. Similarly, business clients may use voice over internet protocol (VoIP) and streaming video services rather than traditional voice and cable television service. Though they are growing uncommon, service bundles provide a boost to telecommunication revenues, drawing customers to sign up for multiple services for a lower combined price. Bundling may persuade customers to keep services they might have otherwise canceled. Furthermore, the availability of free over-the-air television and radio programming constrains higher demand. However, government subsidies help stabilize demand – such as the Lifeline program, which provides low-income consumers with a discount on voice and internet services.
In 2024, telecommunication services revenues are projected to advance 1.5%, representing a rebound from declines in 2023 driven by a pullback from the gains of the period strongly affected by the COVID-19 pandemic and work from home in 2021 and 2022. However, to 2028, faster gains will be prevented by the ongoing declines expected in the wired segment as wireless and VoIP connections, and video streaming outcompete legacy wired services. In addition, the availability of lower cost mobile plans from resellers will prevent faster growth in the wireless segment.
These and other key insights are featured in Telecommunication Services: United States. This report forecasts to 2028 US telecommunication services revenues in nominal US dollars. Total revenues are segmented by provider in terms of:
To illustrate historical trends, total revenues and the various segments, and the number of firms, establishments, and employment are provided in annual series from 2013 to 2023.
Telecommunication services represent the provision of internet, telephone, text, cable and satellite television transmission, and other services.
This report includes the results of a proprietary national online consumer survey of US adults (age 18+). This Freedonia Focus Reports National Online Consumer Survey has a sample size of approximately 1,500, screened for response quality, and representative of the US population on the demographic measures of age, gender, geographic region, race/ethnicity, household income, and the presence/absence of children in the household.
More information about the report is available at:
https://www.freedoniagroup.com/freedonia-focus/telecommunication-services-united-states-ff80027.htm
About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Services reports can be purchased at Freedonia Focus Reports or MarketResearch.com.
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