Batteries/Lead-acid Performance 060217
Telecom: A Positive Charge For the Lead-acid Business in North America
by Shirley Georgi
At the Battery Council International Convention in April 2005, Bob Cullen had good news for the attendees in the Lead-acid business. The telecom market turned up in 2004; battery sales were up 3% when compared with 2003.
Telecom growth, in general, grew 5 percent last year. Giving impetus to the sector were wireless and Internet expansion. The Telecommunications Industry Association reports that the U.S. Internet had 185 million users (about 66 % of the population). By 2006, 64 million users will access Internet via a wireless device. Globally, there is an estimated 945 million users and the trend is to go wireless.
With continued consolidation in the wireless infrastructure and wireless markets, more $$$ are being placed in this sector than in any other communication group. Wireless spending was up 10% in 2004 and is growing at a 9% rate. In fact, of the $55 billion capital expenditures in telecom in 2004, the greatest portion, 34% ($18.7 billion), was spent on Wireless. In comparison, Regional Bell Operating Companies (RBOCs) spent $15.95 billion and Broadband had total costs of $11.5 billion.
Both broadband and cable are moving to the Telecom market to make Wireless Internet the top player. Emphasis will focus on new construction. At this point the replacement market is unknown.