Wireless Key to Future-Proofing Partners' Business Models

Wireless Key to Future-Proofing Partners’ Business Models

Written by Channel
May 18, 2012

U.S business telecom spending over the next five years will have little to do with wireline.

Channel partners seeking to future-proof their business models and solidify their value to customers need look no further than the vertical markets gobbling up wireless services.

According to a new report from Insight Research, a number of verticals wholesale trade, finance, insurance, real estate services, professional business services and communications accounted for 68 percent of total business telecom expenditure in 2011. Growth from here on out will be fueled by wireless, Insight found, as wireline services among U.S. businesses remains flat through 2016. Wireless, on the other hand, will experience a compound annual growth rate of 9.4 percent from 2011-2016.

“The U.S. telecommunications industry continues to show modest revenue growth, driven by business Internet and mobility solutions,” said Fran Caulfield, research director for Insight Research. “As U.S. business activity recovers, employment and network traffic increase. In parallel, business applications shift to the cloud and end users shift to wireless access, driving higher network and wireless revenues for service providers.”

For channel partners, opportunity lies not just in the sales of service plans, but in mobile lifecycle management from plan and device provisioning to monthly audits, permissions oversight, apps development and more.

In all, U.S. businesses will spend $154 billion for wired and wireless telecom services in 2012. That number will jump to $184 billion by the end of 2016, powered by demand for cellular and other wireless services, Insight said. Solution selling into vertical markets will prove particularly important to partners and providers trying to differentiate themselves. Moving away from commodity voice sales and offering value-added services reaps higher margins and loyal customers, Insight noted.

Here are other vertical markets to target, according to Insight: