Yesterday, UBS revised downward its forecast for telco spending in 2009, but today, Insight Research Corp. offered some good news for our industry. According to Insight, the worldwide telecommunications industry is expected to continue expanding over the next five years. That’s due in no small part by continuing growth of wireless services in emerging markets, which Insight said will offset the spending slowdown in the advanced economies.
Insight expects overall telecommunications services revenue to grow at a compounded rate of nearly 10.3 percent over the next few years, reaching $2.7 trillion by 2013.
According to the company, which just issued its report “The 2009 Industry Review: An Anthology of Market Facts and Forecasts,” nearly all the growth is in broadband services, with wireless broadband service revenue expected to grow at a compounded rate of more than 70 percent over the forecast period. Wireline broadband services, according to Insight, will grow less than 10 percent in the same period.
“The worldwide economy is in turmoil, there is no doubt about that, but over the long haul we expect the telecommunications industry to continue growing,” says Insight President Robert Rosenberg. “Telecom is as necessary to development as roads and bridges, so we expect it to fare much better than other economic segments that may take longer to return to normalcy.”