Tuesday, June 28, 2022

WAN Services Now as Little as 3% of Telco Revenues?

Most global telco revenue is earned providing mobile services. Contributions by local fixed network services are lower. Perhaps lowest of all are wide area connectivity services. If total service provider revenue is about $1.6 trillion, mobility represents perhaps 57 percent of the total.  


source: IDC


That is just as true in the consumer segment, which itself represents perhaps 60 percent of total service revenues for a typical service provider. In the United States, for example, fixed network communication services might represent only about 20 percent of total consumer segment revenues. As much as 20 percent of total revenue might be generated by video entertainment subscriptions. 

source: Mobile Experts


Wide area network services sold to businesses are a small revenue contributor, overall. In 2020, for example, wide area network services might have represented $46 billion in service revenue, or possibly three percent of total service provider revenue.  

source: Telegeography 


Total enterprise connectivity revenues might have been in the $70 billion range in 2018, with roughly 30 percent coming in the form of local access.  


The point is that wide area network services--for consumers or businesses--is a small part of total telecom service provider revenues, in the three-percent range in most cases.


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