Is Global Telecom Revenue Growing or Flat?

By

Is global telecom revenue growing, flat or shrinking? It turns out analysts disagree. Researchers at Ovum think global telecom revenues will remain roughly flat over the next few years, with a decline in spending on voice services counterbalanced by growth in spending on mobile and fixed (broadband) data services.

Gartner researchers however, expect 4.3 percent revenue growth, globally, for 2013. While, IDC is forecasting low single digits revenue growth.

Those service provider revenues will be unevenly distributed, growing in most regions, but shrinking in Europe.

What is clear is the rapid growth of mobile usage and revenues, notably with European weakness. In 2001, there were about one billion mobile phone subscribers in total, most of them in developed countries. By about 2012 there were six billion subscribers, and 73 percent of those (4.4 billion) were in developing countries that account for just 20 percent of the world’s total gross domestic product.

In just 10 years, mobile phones have almost reached saturation point in countries where people earn just a few dollars per day. Smartphone adoption is following a similar sort of trajectory.

In 2009, the Asia-Pacific region had 86 million smart phone users. In 2013, 738.2 million smartphone users. By way of comparison, that means the Asia-Pacific region has more than four times as many smartphone users as the next largest region, Western Europe, which will have 161.1 million by the end of the year, and North America, which will have 152.2 million.

Furthermore, nearly 2.5 billion of the world’s 4.3 billion mobile phone users in 2013 will be in the Asia-Pacific region, according to research firm eMarketer.

It estimates that 2.43 billion people in Asia-Pacific will use a mobile phone at least monthly in 2013, representing 56.3 percent of the world’s mobile phone users.

More than one billion of these mobile users will be in China alone, and about half that number will reside in India. By 2017, eMarketer estimates, Asia-Pacific will have nearly three billion mobile phone users out of a total 5.10 billion across the globe.

So smart phones might be the fastest-adopted technology in human history.

Mobile phone usage is growing exponentially in the Middle East and Africa as well, with Africa expected to become the second-largest mobile phone region, after Asia.

In the Middle East and Africa, 525.8 million people use a mobile phone at least monthly. .

Smart phone use in the region will nearly double to 112.2 million, up from 67 million in 2012, while penetration of smartphones among the population as a whole in will increase from 5.1 percent to 8.3 percent.

We’ll have to wait and see though, whether global revenue actually remains flat, or grows.

 




Edited by Stefania Viscusi

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More