Small Biz Wireless Spending Poised to Overtake Wireline

We knew this day was coming we just didnt know when. Wireless will become the largest category of telecom spending for small businesses next year, the key finding of a new report from industry researcher In-Stat.

Connectivity has become the life blood of businesses efforts, but it is particularly crucial to small businesses as many operate without a brick-and-mortar presence to customers,” said analyst Greg Potter. One can already see the strength of wireless in 5-9 and 10-19 sub-segments. It is the 20-99 sub-segment, however, that will maintain the dominance of wireline voice through the end of this year.”

The In-Stat report provides forecasts of U.S. business telecom spending through 2015, with detailed segmentation by product category, size of business, corporate liable spending, individual liable spending and vertical market.

Breaking it down a little bit, the report says Infrastructure as a service (IaaS) is set to grow by leaps and bounds up 190 percent from 2010 to 2015. Cloud computing services are the largest growth engines for small business telecom spending. Traditional TDM services will drop, In-Stat says, by 15 percent over the course of the five-year period; thats a loss of more than $1 billion. Retail trade, along with the hospitality and food vertical, accounted for more than $11.5 billion in spending in 2010. The 20-99 employee size portion of the small business segment accounts for over half of all spending in small businesses (5-99 employees).

The full In-Stat report is available here.

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