The US Fixed Telecoms market was worth $117.0 billion at the end of 2006, with 172.2 million total voice connections including VoIP.

We expect an overall decline in consumer fixed line penetration from 96% in 2005 to 74% in 2010. We anticipate a decrease in fixed-line connections as consumers substitute usage of fixed-line telephony with that of mobile and VoIP telephony.

We expect a surge in VoIP connections amid growth of broadband connections, which will partly offset the decline in fixed-line connections. The intensity in competition between operators will result in further reductions in tariffs resulting in declining ARPU levels for consumer connections.

Increased bundling of call minutes with line-rental charges will lead to an increase in the share of line rental revenues versus call revenues. Revenues from VoIP connections are expected to increase, driven by increased connections and greater usage per subscriber.