The global telecommunications industry was not immune to economic forces in 2012 that slowed growth from earlier predictions, according to a new market analysis report from Insight Research. 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 at a combined average growth rate of 3.8 percent.
The report notes that wireless subscriber growth compounded with rising usage will raise wireless revenues by 31 percent 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 Solutions, that will show double-digit annual percentage growth.
In North America, wireless revenues will grow by 35 percent and wireline broadband revenues will grow by 19 percent 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,” says Fran Caulfield, Research Director for Insight Research.
“Global telecommunications spending will hover around 3 percent of GDP; slightly lower in the US. 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,” Caulfield concluded.