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Small Businesses Are Cutting the Cord



Push is coming to shove more quickly than expected in the tussle between wireline and wireless for dominance in telecommunications, new research shows. By next year, according to research firm In-Stat, wireless services will overtake wireline voice and become the largest category of telecommunications spending for small businesses.

The research projects a continuing decline in spending on traditional TDM (time-division multi-tasking) services such as landline telephone service , dropping more than $1 billion, or 15 percent, from 2010 to 2015.

The largest growth engine for small-business telecommunications spending will be cloud computing, which is also known as infrastructure as a service (IaaS). This category will grow 190 percent from 2010 to 2015, In-stat said.

Particularly strong growth in spending on wireless services already has been seen in the retail trade as well as the hospitality and food industry, which accounted for over $11.5 billion in spending last year.

More than half of all small-business spending on wireless services is by companies with 20 to 99 employees, In-Stat said, and companies with fewer than 20 employers have been leading the way in adoption.

"The smaller the business, the easier it is for them to go wireless," Greg Potter, an In-Stat research analyst, told BusinessNewsDaily.

"Connectivity has become the lifeblood of businesses’ efforts, but it is particularly crucial to small businesses, as many operate without a brick-and-mortar presence to customers," said 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."