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Broadband booming in the US

14 July 2004

Wholesale fixed line services will generate almost $50 billion this year in the United States as broadband becomes widely adopted, an industry analyst has predicted.

Yankee Group's recently published report "US Wholesale Wireline Forecast" suggests that the segment will amount to nearly a quarter of the total fixed line market in 2004.

Researchers have also estimated that the data services market will grow 3.1 per cent by 2008, driven by wholesale broadband connectivity and local area networks (LANs).

"Buyers are not merely seeking low-cost wholesale services, although price remains a pre-eminent criterion for selecting a wholesale provider," said JP Gownder, wholesale communications strategies senior analyst for Yankee Group.

"In addition, the primary motivators for wholesale purchasing are route diversity, operational flexibility and managing industry uncertainty."

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