Fergie's Tech Blog

Broadband No Telco Revenue Savior

No big surprise here.

Hell, I knew this ten years ago while I was working for Cisco, with regards to data services vs. traditional telco services, and why the telcos just can't seem to fathom the business-side of data services.

To wit, the brouhaha surrounding "Network Nuetrality" and the telcos' desire to change their pricing models to generate additional revenue.

And I agree with the summary here -- there's no sure bet that the telcos will be successful in this regard.


Via Red Herring.

U.S. phone companies are likely in for tough times. The growth in revenue from broadband services will not be enough to offset the loss in revenue from their traditional wireline businesses, a research company said Monday.

The result means that between 2004 and 2009, the industry will lose $21 billion in wireline sales, according to In-Stat. The figure includes losses in all line-based services.

Phone companies are struggling to make up for the lost revenue, as consumers give up traditional phone lines and turn to alternative voice options like cell phones and VoIP services. But it’s unclear whether they’ll succeed.

posted by Fergie @ 3/27/2006 12:06:00 PM