New Data on Data

Take a look at the chart featured on the homepage of this week's issue, and you will see an interesting trend in the world of wireless. According to this sneak preview of TIA’s 2008 Telecommunications Market Review and Forecast, there is little doubt that growth in U.S. wireless voice revenue is slowing. This isn't a bad thing, necessarily; it's simply a reflection of the industry having very effectively deployed wireless across the country.

But look again at the same chart and you'll see another data set, describing an altogether different trend: the explosion of wireless data revenues.

While voice revenues are slated to increase only a few billion per year, reaching $125.7 billion by 2011, growing 1.7 percent compounded annually, wireless data revenues are set to soar $10 billion to $13.7 billion per year over that same period, coming in at $67.2 billion in 2011 from about $22 billion this year, a 32.2 percent compound annual growth. Wireless data is clearly the driving force in continued wireless growth.

What does this mean? It means consumers are responding overwhelmingly to the new and exciting services offered over their increasingly capable handsets. It means we can expect even more mobile video, more data-rich content like games and location services, and even more database-driven services like mobile commerce.

These are hardly controversial projections. Most in the industry would agree that mobile data is on the rise. But in all the excitement, it's also important to remember that with such growth will come responsibilities. This jump in data means a major increase in bandwidth use, which may lead carriers to invest in new wireless network infrastructure. More data usage means more of our lives move into the mobile space, much the way our shopping, communications and other activities moved onto the Internet during the last decade.

Ultimately TIA's job is to help our members navigate these responsibilities. A major means for doing so is to constantly educate Congress on the importance of limited regulation. If U.S. wireless data capacity is to expand, carriers can't feel limited in their options or face little or no return on investment. Another tool is the standards work TIA's engineering committees do in the wireless space, which is carried out by top engineers from all the major players in the ICT industry. Our TR-45 Mobile and Personal Communications Committee, for example, is even now doing work with authentication, electronic media documentation and wireless alerts, among other areas.

As trends like the one highlighted in this week's Network emerge, TIA will be sure to stay in step with the industry. And by staying in step with the industry, TIA will remain vital to its members, the companies shaping these trends.

Thank you,
Grant Seiffert
President
TIA