Consumer demand for high-speed internet on mobile devices will likely accelerate over the next five years, resulting in the widespread upgrade of wireless network services to compete for the consumer's dollar
Los Angeles, California (PRWEB) December 13, 2011
The Fiber Optic Cable Installation industry will likely experience heightened revenue growth over the next five years, according to report from IBISWorld, the nation’s largest publisher of industry research. Revenue is expected to increase at an average of 5.0% per year to $5.5 billion in the five years to 2016. Wireless carriers expand fiber optic cable installation at higher rates, as more carriers upgrade their networks and consumers increasingly demand high-speed internet on their mobile phones. Broadband connections will also rise during the same period, albeit at slower rates than the previous five years. Still, this trend will push industry demand upward, and rural areas continue to expand their adoption of high-speed internet. While the ARRA awarded most of its funding during the previous five years, the industry will still benefit over the next five years, as infrastructure upgrades make their way down to fiber optic cable installers. For this reason, industry research firm IBISWorld has added a report on the Fiber Optic Cable Installation industry to its growing Specialist Contractors report collection.
Fiber Optic Cable Installation industry has expanded over the past five years, with revenue anticipated to grow at an average of 2.8% per year to $4.3 billion in the five years to 2011. Firms in the industry install fiber optic cable, specifically engaging in initial installation, repairs and maintenance. Consumers have increasingly demanded high-speed internet in their homes and on mobile devices, underpinning this trend. As a result, wireless carriers and cable providers are demanding fiber optic cable installation at increasing rates. The ramp up in fiber optic cable installation has expanded the speed and size of wireless carrier and cable provider data networks, providing higher speed data transmission and larger volume data transfers. Despite the recession, the industry still grew as the American Recovery and Reinvestment Act (ARRA) awarded government contracts and set forth incentives for broadband infrastructure development across the United States.
Because of increasing consumer demand for high-speed internet, many wireless carriers have upgraded their services to accommodate demand for high-quality streaming video, audio and mobile applications. These wireless carriers upgraded their networks with fiber optic cables to allow mobile users to transfer data at high rates from their mobile phones. Furthermore, consumers also demand high-speed internet in their homes. Despite the high rate of broadband connections available in heavily populated metropolitan areas, rural areas still have room to grow. Increasing demand for high-speed internet has prompted industry players to install fiber optics to meet this demand. This trend was buoyed by the ARRA, as specific contracts were awarded for rural broadband development. As a result, industry revenue has expanded by 3.5% from 2010 to 2011, on the back of wireless upgrades and continued rural broadband demand.
According to IBISWorld analyst, Justin Molavi, the next five years will bring higher revenue growth to the Fiber Optic Cable Installation industry. “Consumer demand for high-speed internet on mobile devices will likely accelerate over the next five years, resulting in the widespread upgrade of wireless network services to compete for the consumer's dollar,” says Molavi. Firms that perform work for wireless carriers will be most competitive as they already have experience working for this customer segment. Rural broadband development will continue, and many industry players like Quanta Services and MasTec Inc will experience high demand from this market segment, as rural demand expands. As a result of these trends, industry revenue is expected to rise by 5.0% per year to $5.5 billion in the five years to 2016. Quanta Services is the largest player, and provides design, installation, maintenance and repair for end-to-end network infrastructure. It serves the United States and Canada, and it has also completed international projects.
For more information, including latest health trends, statistics, analysis and market share information on Fiber Optic Cables, download the full report from IBISWorld on the Fiber Optic Cable Installation industry
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