How Wireless Saved Wireline

With US telephone companies in the throes of their year-end 2008 reporting, the emerging picture is a mixed bag. Access line losses are in free-fall, down another 9-10% for the year to around 130 million. (Remember access lines peaked at nearly 200 million in 2000.) A similar drop is expected in 2009. Broadband lines are growing at or near double-digit rates but there are not yet enough of them to offset basic voice service declines. At best, telco revenues are flat. Consider three wireless scenarios for telcos: femto cells, broadband wireless access, and wireless backhaul.