Long distance private line and data revenue will grow at 6% annua...
Long distance private line and data revenue will grow at 6% annually over the next 5 years, a study by Atlantic-ACM said. It predicted growth in data and fixed revenue in bundles would stem the 3.8% rate of revenue…
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contraction for traditional voice services as the market began to stabilize in 2004. Overall, it said, the long distance voice and data market is expected to decline at a compound annual growth rate of 0.4% in 2002-2008. The report said the long distance industry contracted 14% to $81.4 billion in 2002. It said price depreciation and bundles were the major factors contributing to high near-term revenue shrinkage. “Although there was an increase in the total number of minutes in 2002, price depreciation drove a revenue decline,” said Atlantic- ACM Vp Taher Bouzayen: “The early stages of migration from stand-alone long distance products to bundles contributed to overall shrinkage.” The report also projected the market share of AT&T, MCI and Sprint, which together held 67.5% of the market in 2002, would decrease to 53.7% by 2008. “While small carriers will account for some of this displacement, the lion’s share will be captured by the RBOCs,” the report said.