If you look at total U.S. telecom and video revenues you get a big number. Over $400 billion big for 2019, or $404.5 billion to be exact. Interestingly, that number has slightly declined, according to market research firm Global Data. It’s down 0.5% from the previous year.
But broadband is coming to the rescue, with the total figure expected to grow to $419.4 billion by 2024, thanks to mobile broadband and fixed broadband.
“Despite this decline, which is mainly due to declining revenues from mobile and fixed-voice data communications, total service revenue is expected to increase at a compound annual growth rate (CAGR) of 0.7% between 2019 and 2024 to reach US $419.4 billion by 2024, driven by growth [in] mobile broadband and fixed broadband revenues,” said Ivan Maldonado GlobalData technology analyst.
That fixed broadband revenue is expected to grow, the research firm forecasts, at a compound annual growth rate (CAGR) of 4% for the next five years, reaching a total of $78.5 billion in 2024.
According to Global Data, growth will be mainly driven by increased adoption of ultrafast broadband service connections, supported by operator investments in fiber infrastructure across the country.
“Mobile data will remain the leading contributor to telecom service revenue over the forecast period, increasing from $131.2 billion in 2019 to $194.6 billion in 2024. Growth will be supported by the uptake of smartphone subscriptions, increasing demand for mobile data services, and growing adoption of 5G services,” Maldonado said, in a prepared statement. “Pay-TV revenue will drop from $94.4 billion in 2019 to $84 billion by 2024 as a result of cord-cutting trends.”