Broadband a Bright Spot in Lagging Telecom Market.

SCOTTSDALE, Ariz. -- Consumer service revenues for telecom providers in the United States are expected to deteriorate over the next several years, falling to $106.7 billion in 2009 as decreasing revenues for voice services and dial-up outweigh revenue increases for both cable TV and broadband services, reports In-Stat (http://www.in-stat.com). Broadband, however, will be a significant revenue growth generator, with market penetration growing from 28.6 percent of the population in 2004 to nearly 50 percent by the end of 2009, the high-tech market research firm said.

"The migration from dial-up to broadband is good news for service providers, as the monthly fees for broadband will remain substantially higher than for dial-up," said Amy Cravens, In-Stat analyst. "With $13.7 billion in broadband revenues in 2004 versus $10.9 billion in dial-up revenues, broadband has already outpaced dial-up as a revenue-generating opportunity."

A recent report by In-Stat found the following:

--Total consumer spending on communication services, including local voice, long distance, cable TV, dial-up, and broadband was $114.8 billion in 2004.

--By 2009, broadband services will generate $15 billion more per year than dial-up.

--According to In-Stat's 2005 Consumer Telecom Survey, 35 percent of respondents currently purchase multiple services from a single provider.

The report, "Common Cents: Consumer Telecom & Technology Spending, 2004-2009" (#IN0501966IA), explores which services will contribute to a decline in U.S. consumer telecom spending, as well as which services are expected to continue to grow. Revenue opportunities are segmented by household income to further identify areas of opportunity and growth for these services. The report also explores consumer demand for voice services, video services, and Internet services, including revenue forecasts through 2009.

For more information on this report, please visit: http://www.instat.com/catalog/Ncatalogue.asp?id=95 or contact Erin McKeighan at 480-609-4551 or [e-mail]. The report price is $3,495.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, assessments and market forecasts of semiconductors and advanced communications equipment and services. Our forecasts, analysis, and insights are derived from both a deep technology understanding and a unique research methodology, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical technology, product and success decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. In-Stat analysts gain exceptional insight into geographic marketplaces and specific technologies within markets such as electronics, cable and wireless. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.