Web spending seen rising by double digits to 2011

WEB SPENDING SEEN RISING BY DOUBLE DIGITS TO 2011
[SOURCE: Reuters, AUTHOR: Gina Keating]
Internet advertising and access spending by U.S. consumers will rise each year by double digits on average through 2011, fuelled by high-speed connections and social networking and entertainment sites, according to a forecast released on Thursday. PricewaterhouseCoopers' Global Entertainment and Media Outlook expects combined spending on Web advertising and fees paid by U.S. consumers to Internet providers to reach $78.4 billion by 2011, up from $47.2 billion in 2006, a 10.7 percent average annual growth rate. The United States has the world's largest online ad market, projected to grow to $35.4 billion by 2011. But China will overtake the United States to become the world's largest Internet territory in terms of users by 2009, the report said. The report cited "triple-play packages" for combined Internet, telephone and television service as a driver for broadband growth in each global region, including the United States, over the next five years. Telephone company investments in infrastructure will also contribute to broadband growth, as consumers migrate from dial-up services, causing spending on dial-up access to drop by an average of 25.5 percent annually, the report said. By 2011, the number of broadband subscribers will grow to 89 million, an average annual increase of 12.2 percent, the report showed.
http://www.reuters.com/article/technologyNews/idUSN2029583020070621
* Tech execs see convergence lifting broadband demand
[SOURCE: Reuters, AUTHOR: Ritsuko Ando]
Top telecommunications executives attending an industry conference this week forecast wireless, video and Internet services would increasingly converge, bolstering demand for Internet network capacity.
http://www.reuters.com/article/technologyNews/idUSN1846685020070621