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ICT Services Predicted to Grow Moderately Among SMBs

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.


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