The global telecommunications industry was not immune to economic forces in 2012, which slowed growth from earlier predictions, confirmed market analysis from The Insight Research Corp. Spending for wireline services contracted in 2012, while spending on wireless services grew modestly. According to the new industry market study, telecommunications services revenue worldwide will grow from $2.2 trillion in 2012 to $2.7 trillion in 2018, a combined average growth rate of 3.8%.
"The 2013 Telecommunications Industry Review: An Anthology of Market Facts and Forecasts" notes that wireless subscriber growth compounded with rising usage will raise wireless revenues by 31% from current levels, yet wireline revenues will remain flat until substantial economic recovery kicks in. Despite these modest gains, there are some sectors, such as Ethernet, cloud, and mobile, that will show double-digit annual percentage growth. In North America, wireless revenues will grow by 35% and wireline broadband revenues will grow by 19% over current levels.
"Telecommunications revenues are driven by several factors – economic conditions, household expansion, population, and disposable income – to name a few. Until these indicators strengthen we will continue to see modest improvements in growth areas, such as wireless data and IPTV, along with declines in mature services, such as voice and wireline data," said Fran Caulfield, research director for Insight Research. "Global telecommunications spending will hover around 3% of GDP; slightly lower in the U.S. Despite the weakness in these indicators, the fact remains that telecommunications is a key enabler of economic growth and service providers with the right strategy will prosper."
In addition to regional and service forecasts, the market research report provides an assessment of the key drivers of this growth, including industry trends, network infrastructure and access technologies, future services, OSS/BSS and capex spending, and enterprise telecom markets.
Insight Research: Wireline growth awaits economic recovery
The global telecommunications industry was not immune to economic forces in 2012, which slowed growth from earlier predictions, confirmed market analysis from The Insight Research Corp. Spending for wireline services contracted in 2012, while spending on wireless services grew modestly. According to the new industry market study, telecommunications services revenue worldwide will grow from $2.2 trillion in 2012 to $2.7 trillion in 2018, a combined average growth rate of 3.8%.
Jan 29th, 2013
