Nobody knows whether the global Covid-19 pandemic will cause connectivity service provider revenue to shrink or simply flatten, but it is a safe bet nobody expects revenue to grow much, if at all.
Pre-pandemic expectations were for slow growth globally, and that is likely the pattern which will return after a relatively brief period of instability.
Worldwide spending on telecom services and subscription TV services totaled $1.6 billion in 2018, reflecting an increase of 0.8 percent year over year, according to the International Data Corporation. IDC expects the worldwide spending on telecom and TV services to reach nearly $1.7 billion in 2023.
It is worth mentioning that revenue would have been lower had connectivity providers not moved into the TV subscription business.
Separately, Convergence Research Group estimates 2019 U.S. cable, satellite and telco TV access revenue declined three percent to $100.4 billion.
Mobile services, per-pandemic, were expected to dominate the industry in terms of spending, and likely will return to that pattern after a relatively-brief period of instability.
The mobile segment, which represented 53 percent of the total market in 2018, is expected to post a compound annual growth rate of 1.4 percent over the 2019-2023 period, driven by the growth in mobile data usage and the Internet of Things, which will offset declines in spending on mobile voice and messaging services.
Fixed data, especially broadband internet access, is still expanding in most geographies. Fixed data service spending represented 20.5 percent of the total market in 2018 with an expected CAGR of 2.6 percent through 2023,
Spending on fixed voice services will record a negative CAGR of 5.3 percent over the forecast period and will represent only 8.5 percent of the total market through 2023.
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