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Share of Wallet: US Small Business Wireless Telecom Spending (5 to 99 Employees)

Published by: In-Stat

Published: May. 18, 2007 - 9 Pages


Table of Contents


In This Update

2007 SMB-Sized US Business Wireless Telecom Spending

Update to Report Methodology

SMB Business Spending Allocation among Services and Equipment

Wireless Services and Equipment Spending

Wireless Voice Services Spending

Wireless Data Services Spending

Wireless Equipment Spending

Definitions




List of Tables




Table 1. Wireless Telecom Spending for Services and Equipment—SMB US Businesses, 2005-2011 (US$ in Millions)

Table 2. Spending Allocation among Wireless and Wireline Services—SMB US Businesses, 2006-2011 (US$ in Millions)

Table 3. Wireless Services and Equipment Spending—SMB US Businesses, 2005-2011 (US$ in Millions)

Table 4. Wireless Voice Services Spending—SMB US Businesses, 2005-2011 (US$ in Millions)

Table 5. Wireless Data Services Spending—SMB US Businesses, 2005-2011 (US$ in Millions)

Table 6. Wireless Equipment Spending—SMB US Businesses, 2005-2011 (US$ in Millions)




List of Figures




Figure 1. Wireless and Wireline Services Spending Allocation—SMB US Businesses, 2006 and 2011 (US$ in Billions)

Abstract

The size of a market measured in annual revenue is the starting point for organizations to evaluate their reallocation of resources. The "Share of Wallet" reports use industry and economic data to set a baseline for the size of the wireless and wireline telecommunications markets within the US. These reports then use trend analysis, information from In-Stat surveys, and economic principles to forecast future market sizes.

This report looks at the spending within small and medium-sized businesses (SMB). The report's focus is on wireless service for both wireless voice and mobile data and spending on wireless equipment within this segment. For perspective, wireless spending data are compared to wireline spending. The key finding is that spending on wireless services is projected to exceed spending on wireline services by 2010. This is surprising in that wireless spending in the majority of SMB businesses is managed very casually. As wireless becomes the dominant telecommunications cost within an organization, companies should watch this expense more closely.

Another significant finding is that mobile data spending is growing much faster than the spending for wireless voice services. Wireless voice growth is in single digits, with a 6% CAGR, while mobile data is almost five times that, with a 27% CAGR. Unfortunately, since some people within the telecommunications industry tend to focus only on voice services, they would miss the greatest growth opportunities.

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