Wireline Services Continue to Decline
VoIP cited as one factor in staggering decline of wired telecom industry
By Jim O'Neill at; Fierce VoIP
March 28, 2011 — 9:25am ET
Waiting for the economic recovery to revive that portfolio heavy with wired telecommunications carriers and their ilk? You may be in for a longer wait than you expected, says market research firm IBISWorld.com.
Among the company's list of "Top 10 Dying Industries," you guessed it, wired telecom carriers top the list. According to IBISWorld, of the 700 industries it studied, the wireline folks saw the biggest drop in actual revenue between 2000 and 2010, 55 percent to $154 billion; and they're expected to see an additional decline of 37 percent between 2010 and 2016, said IBIS World. While major players like AT&T (NYSE:T) and Verizon (NYSE:VZ) continue to dominate the industry, they are generating lower returns each year as consumers switch to VoIP and wireless products.
The Wired Telecommunication Carriers, Newspaper Publishing and Video Postproduction Services industries are suffering the most due to the rapid change in technology. While major players like AT&T (T) and Verizon (VZ) continue to dominate the Wired Telecommunication Carriers industry, they are generating lower returns each year as consumers switch to VoIP and wireless products.