IDC: Forecast Anticipates Decline In Total Voice Revenue in 2008-2009 for the U.S. Consumer Wireless Industry

According to IDC, "although the U.S. wireless service provider industry rocketed ahead in 2005, adding approximately 21.8 million new subscribers, the U.S. consumer wireless industry is rapidly approaching key turning points in 2006. With subscriber growth slowing and continued voice average revenue per user (ARPU) erosion factors, total voice revenue is expected to decline in the 2008-2009 timeframe."

IDC found The U.S. wireless service provider industry had another stellar year in 2005, crossing the 200 million subscriber and 70% market penetration thresholds, receiving positive market response to the first handset-based 3G applications, and with providers reporting they had crossed the 10% data ARPU level."

IDC predicted that "two key roles that MVNOs will play over the forecast period are to force the broader wireless service provider market to adopt a retail market model approach and to increase the overall level of service provider competition."

Scott Ellison at IDC said, "Total voice service revenue declines late in the forecast period will jolt an industry accustomed to 25 years of voice revenue growth and further emphasize the importance of data services to the future of the industry. With the wireless subscriber market approaching saturation, driving further adoption usage of data services will be critical to maintaining total ARPU and service growth in light of continuing voice ARPU erosion."