Omnicity Corp., known for bringing wireless broadband services to rural America, is on top of one of the biggest waves in telecommunications, the rapid expansion of broadband services outside of the traditional urban and suburban base areas.
It goes without saying that the communications industry is the nervous system of today’s economy, generating global annual revenues of nearly $2 trillion. North America remains the largest telecommunications market, with revenues of over $½ trillion. Much of this, of course, is due to the continued growth of the Internet. Worldwide, there are now nearly 1½ billion Internet users. Data-intensive Internet applications such as Voice-over-Internet Protocol (VoIP) and video are key drivers in the telecommunication industry’s growth, providing increased demand for high-speed broadband capabilities.
The number of broadband connections is increasing rapidly as vendors and consumers require the ability to share large files, download music and games, and provide video or VoIP services. It is estimated that the total number of broadband lines in the 40 largest broadband countries will grow to over 600 million by 2013. However, growth in most of the richer countries is slowing, as service approaches saturation. According to Gartner Group, by 2012, broadband will be found in 25% of households worldwide, but the five top countries will have broadband penetration already exceeding 60%.
In less developed countries, however, there is still tremendous room for growth, and the number of broadband connections is expected to grow 10 times as fast as the more developed markets. Larger countries, like China and India, have already gone through a rapid initial growth phase, but are still expanding. China is forecasted to become the largest broadband country, with 153 million broadband lines, versus 117 million in the U.S. In addition, India and Brazil are expected to enter the top ten countries, with Russia as number 11. In the meantime, the demand for broadband in underserved areas in developed countries is also accelerating. Right now, the dominant fixed broadband technology is DSL, which controls 66% of the market.
Omnicity, as the Midwest’s largest fixed Wireless Internet Service Provider (WISP), sees the unserved and underserved areas of the U.S. as America’s next boom market for telecommunications. The company is already growing rapidly, largely through acquisitions, but still has a huge way to go. Most recently they announced an 89% jump in Q4 09 revenues compared to the same quarter 08. Omnicity expects both its customer base and revenues to grow by a factor of 30 over the next several years.
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