Wireless networks, the Internet, and global telecommunications are expected to generate nearly $1.2 trillion in revenue this year; however, this revenue landscape could flip 180 degrees within the next five years.
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Source: BusinessWeek |
According to the latest market analysis report from Insight Research, one of these three networks will dominate the other two. This study analyzes and dissects three scenarios related to telecom revenue and subscriber growth from now until the end of 2010.
In the first scenario, all three networks evolve along their current trajectories. The other two scenarios predict that either the Internet or wireless networks will dominate the entire market.
Regardless of which network prevails, the level of media consumption is expected to continue rising. Enhanced services such as video and images are projected to experience significant growth in the near future, the report states.
“This work imagines the future of the telecommunications industry based on current trends. What would happen if the Internet or a wireless service provider was the only way I could communicate with others in five years? What would this mean for the global telecommunications industry?”
“Surprisingly, there will not be major disruptions in revenue, although subscriber growth and profits vary widely“, stated the president of Insight Research.
Specifically, the revenue gap between holding a dominant position and being dominated could reach $752 billion.
Another rather surprising prediction for many is that free or low-cost communication methods via wireless or the Internet will not take off. According to Insight, even when using services deemed free, users will still have to pay taxes for building and maintaining the network as usual.
Tien Yi