Small Business Spending on Wireless Services to Overtake Wireline Voice in 2012, Says In-Stat

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Connectivity has become the life blood of businesses’ efforts, but it is particularly crucial to small businesses as many operate without a brick-and-mortar presence to customers. One can already see the strength of wireless in 5-9 and 10-19 sub-segments…

Scottsdale, Ariz. (PRWEB) August 18, 2011

It has always been predicted that small business expenditures on wireless services would someday exceed that of wireline voice. That “someday” will be in 2012 as wireless becomes the largest category of telecommunications spending for small businesses, according to new research from In-Stat (http://www.in-stat.com). Wireline data spending and cloud computing services round out the four spending categories.

“Connectivity has become the life blood of businesses’ efforts, but it is particularly crucial to small businesses as many operate without a brick-and-mortar presence to customers,” says Greg Potter. “One can already see the strength of wireless in 5-9 and 10-19 sub-segments. It is the 20-99 sub-segment, however, that will maintain the dominance of wireline voice through the end of this year.”

Additional data includes:

•     Infrastructure as a service (IaaS) is set to grow 190% from 2010 to 2015. Overall, cloud computing services are the largest growth engines for small business telecom spending.
•     Traditional TDM services are set to decline 15% from 2010 to 2015, a loss of over $1 billion.
•     Retail trade, along with the hospitality and food vertical will account for over $11.5 billion in spending in 2010.
•     The 20-99 employee size portion of the small business segment accounts for over half of all spending in small businesses (5-99 employees).

The In-Stat research, Small BusinessMarkets for Telecom Services: Wireline Voice, Wireline Data, Wireless, Cloud Computing, and VoIP in 20 Verticals (#IN1105071SBA) provides forecasts of US business telecom spending for the 2010-2015 period with detailed segmentation by product category, size of business, corporate liable spending, individual liable spending, and vertical market.

Detail is included for:

•     Wireless data (access and other, messaging), wireless handsets, and wireless voice services
•     Local services, domestic long distance, international long distance, toll-free services, other services
•     Application-based VoIP, broadband IP telephony, hosted IP PBX, premises-based IP PBX, TDM centrex, TDM PBX, and traditional TDM
•     Public cloud services: IaaS, PaaS, SaaS; co-located services, and dedicated server services
•     ATM, Ethernet, frame relay, cable, DSL, IP VPN, MPLS, T1/T3, other services

Forecasts are also broken down further into the following 20 vertical markets:

•     Administrative and support services, waste management
•     Arts and entertainment
•     Construction
•     Education
•     Finance and insurance
•     Forestry, fishing, and agricultural services
•     Government
•     Healthcare and social services
•     Hospitality and food
•     Information and communication
•     Management of companies and enterprises
•     Manufacturing
•     Mining
•     Other services
•     Professional services
•     Real estate
•     Retail trade
•     Transportation
•     Utilities
•     Wholesale trade

About In-Stat
In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology decisions.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com and http://www.npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.

Greg Potter, Research Analyst
Email: gpotter(at)in-stat(dot)com; Phone: (480) 483-4444

Rick Vogelei, Marketing Manager
Email: rvogelei(at)in-stat(dot)com; Phone: (480) 483-4476

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