| The RBOCs are positioning to achieve a market presence in broadband services. Companies are
expects to have lower total revenue in the near term, but become increasingly profitable.
The RBOCs accounted for $170.4 billion in dollars in 2002. Verizon was the largest company with
40% of the total market. SBC is the next largest company accounting for 32% of total dollars of
revenue for local telephone services from the regional bell operating companies.
RBOC markets are $170.1 billion in 2001 are expected to reach $238.1 billion by 2007.
Market growth will be driven by participation in wireless communication. Broadband
communication is set to begin to replace analog wireline communication by that time.
RBOC wireline services at $120.4 billion in 2001 are expected to reach $142.8 billion by 2007
and The residential services markets are expected to become a smaller proportion of the
telecommunications local services markets as DSL and cable modems replace existing landline
services. Local RBOC business telecommunications services markets at $14.6 billion in 2001 are
expected to reach $17.4 billion in 2007 as broadband communications needs expand for the
companies and Local residential telecommunications services at $26.6 billion in 2001 are expected to
reach $17.4 billion by 2007.
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