Can Verizon Business grow revenue four percent per year? It might be able to do so. It is not so clear that more than a handful of tier-one service providers will be able to do so, though.
One might ask the question in a broader way: can most tier-one service providers in mature markets do so?
Service providers in developing markets arguably can do better, but major service providers in developed markets have generally seen enterprise revenue contract in recent years.
U.S. fixed network business revenues are expected to keep falling. “The U.S. business wireline telecom services market will continue to slowly decline, shedding roughly $7 billion in revenue from 2019 to 2024,” said Amy Lind, IDC research manager,
Globally, the GSMA says, “enterprise revenue is not growing significantly (at low single digit rates for many operators).
Many would argue T-Mobile is poised to grow far faster than that, based on the 10 percent share T-Mobile now has of enterprise customer spend in the mobile segment of the business.
T-Mobile expects to grow its enterprise share (mobility) to more than 20 percent by 2025. That would require a growth rate of nearly 19 percent annually. Verizon has both fixed and mobile assets to leverage, and includes enterprise; wholesale; small and medium business and public sector customers in its domain.
Other service providers lump small business customers into a mass market category primarily representing consumer revenues.
T-Mobile also expects to grow its share of rural and suburban area customers from the low teens to nearly 20 percent in the same time frame.
Challengers can grow by taking share, but market share leaders will likely have to look for new revenue sources, as the share leaders will be challenged to keep the share they presently have.
That might come in a variety of ways.
Verizon arguably already earns more IoT revenue than many other service providers.
And Verizon has a faster enterprise revenue growth rate than many other major providers.
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