Telecom Industry Revenues To Remain Relatively Flat in 2013

Look for only modest growth in telecom revenues over the next five years.

That’s according to Insight Research, which, in its new forecast, says the global telecommunications industry will bring in $2.2 trillion dollars in 2013, about the same as last year. That number will grow to $2.7 trillion in 2018 at an average annual growth rate of just 3.8 percent.

The market analysis says the wireless side of the business will be the hottest, with revenues there growing 31 percent; yet wireline numbers will remain flat until substantial economic recovery kicks in around the globe. There are some sectors most notably Ethernet, cloud and mobile solutions that will show double-digit annual percentage growth over the period. In North America, wireless revenues will grow by 35 percent and wireline broadband revenues will grow by 19 percent over current levels.

“Telecommunications revenues are driven by several factors-economic conditions, household expansion, population, and disposable income-to name a few. Until these indicators strengthen we will continue to see modest improvements in growth areas, such as wireless data and IPTV, along with declines in mature services, such as voice and wireline data,” said Fran Caulfield, research director for Insight Research. “Global telecommunications spending will hover around 3 percent of GDP; slightly lower in the U.S. Despite the weakness in these indicators, the fact remains that telecommunications is a key enabler of economic growth and service providers with the right strategy will prosper.”

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