Service providers and vendors can look to small and medium businesses (SMBs) for a small increase in information and communications technology (ICT) revenue in the years ahead.
Analysys Mason expects ICT revenue from SMBs to rise from a little more than $37.5 billion in 2013 to $40.6 billion between 2013 and 2018, a 1.6 percent compound annual growth rate (CAGR).
SMBs will be heavily reliant on ICT for mobile voice and data services — that's the largest source of revenue. Those services will increase as enterprises decide to provide mobile handsets, smartphones and tablets to their employees and mobile broadband take-up increases, the firm said.
Fixed broadband revenue is also a large source of revenue for SMBs. Revenue from fixed broadband will go from $5.16 billion in 2013 to $5.54 billion in 2018, a 1.2 percent CAGR. Fixed broadband services – including DSL, cable modem, Ethernet and private lines – will increase slightly along with the number of enterprises while ARPUs will decrease.
The Analysys Mason research also found that telesales revenue will increase from $9.1 billion to $9.42 billion from 2013 to 2018, a CAGR of 0.7 percent. In the same five-year period, agent sales will also increase from $7.65 billion to $9.11 billion, a 3.56 percent CAGR.
Telesales and agent sales make up about 44 percent of total SMB ICT service revenues in 2018. Agent sales make up a larger share of total revenue in the United States than elsewhere partly because of the number of medium-size businesses as a percentage of the total in America is higher than other countries. Also, U.S. medium businesses have more technically sophisticated purchasing integration and support needs than smaller-sized businesses.