According to GlobalData, total U.S. telecommunications and pay TV service revenue will reach $404.5 billion by the end of 2019, representing a 0.5% decline over 2018. While pay TV revenue is expected to decline, fixed and mobile broadband are expected to take up the slack.
Ivan Maldonado, technology analyst at GlobalData, said: "Despite this decline, which is mainly due to declining revenues from mobile and fixed-voice data communications, total service revenue is expected to increase at a compound annual growth rate (CAGR) of 0.7% between 2019 and 2024 to reach $419.4 billion by 2024, driven by growth mobile broadband and fixed broadband revenues."
"Mobile data will remain the leading contributor to telecom service revenue over the forecast period, increasing from $131.2 billion in 2019 to $194.6 billion in 2024," Maldonado said. "Growth will be supported by the uptake of smartphone subscriptions, increasing demand for mobile data services, and growing adoption of 5G services."
Fixed broadband revenue is expected to expand at a CAGR of 4% over the 2019-2024 period, reaching $78.5 billion in 2024. Growth is expected to be mainly driven by increased adoption of ultrafast broadband service connections, supported by operator investments in fiber infrastructure across the country.
"Pay TV revenue will drop from $94.4 billion in 2019 to $84 billion by 2024 as a result of cord-cutting trends," Maldonado said.