Thursday, May 16, 2013

Global Telecom Revenue to Grow 3.4% in 2013

The total worldwide telecom market grew by 3.2 percent during 2012, and IDC is forecasting growth of 3.4 percent during the 2013 time frame, with the market settling into a steady growth rate of about 3.2 percent during the forecast time frame," according to Courtney Munroe, GVP, Worldwide Telecommunications, Mobility, and Network Infrastructure, IDC. 

But those service provider revenues will be unevenly distributed. What is not so clear from those global statistics is the actual pattern of growth and decline regionally.

Revenue growth, though slower than it had been in the first decade of the 21st century, will continue everywhere but Europe. 

The Asia Pacific region will lead growth. But Africa is growing faster than many think. 

Telecom retail revenue in Latin America will grow at a compound annual growth rate (CAGR) of 3.3 percent between 2012 and 2017, according to Analysys Mason.


But the European telecom service market decreased for the third year in a row in 2011, by 1.5 percent, the European Telecommunications Network Operators Association reports. 

In the third quarter of 2012, European carrier revenue contracted, though growing in other regions such as China, the United States, India and South America.


Even in the United Kingdom and Germany, the markets with the brightest future, STL Partners forecasts a respective 19 percent and 20 percent revenue decline in mobile core services (voice, messaging and data) revenues by 2020.


Revenue in the French market will decline 34 percent by 2020. In Italy, revenue will drop 47 percent and in Spain revenue will drop 61 percent by 2020.


Overall, STL Partners anticipates a reduction of 36 percent or €30 billion in core mobile service revenues by 2020, a loss of about €50 billion for Europe as a whole.


Europe's share of the global telecoms market has been declining regularly over the recent years, from 31 percent  in 2005 to just over 25 percent in 2011 as the gap between global growth (+3.2 percent in 2011) and growth in Europe widens.

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