Fergie's Tech Blog

AT&T'S Dorman Says IP Is Driving Telecom Growth

Phil Britt writes in Advanced IP Pipeline:

After weathering the burst of the investment bubble and the indictment of former executives, the telecom industry is transforming and growing again, AT&T chairman and CEO David Dorman said here Wednesday at Supercomm.

The growth, Dorman said, all comes from new technologies, like IP, wireless and Internet services, while traditional telephone services continue to decline.

Dorman linked the decline in part to the Telecommunications Act of 1996, which fueled investment and speculation in competitive carriers. Prior to the enactment of the law, carriers spent about 10 to 15 percent of revenues on capital expenditures, Dorman said. In the late 1990s, that figure grew to more than 40 percent for four consecutive years.

posted by Fergie @ 6/08/2005 12:57:00 PM