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Telecommunications Industry Continues to Grow at Double Digit Rate

January 12, 2010 Leave a comment Go to comments

The worldwide telecommunications industry continues to expand despite adverse economic conditions. The growth will continue over the next five years as growth of wireless services in emerging markets offsets the spending slowdown in the advanced economies.

These findings are revealed in the latest market analysis report from Insight Research Corporation. According to the report, overall telecommunications services revenues are expected to grow at a compounded rate of nearly 13.8 percent over the next few years, reaching $3.7 trillion by 2015.

The report, “The 2010 Telecommunications Industry Review: An Anthology of Market Facts and Forecasts,” states that amidst the current economic uncertainty, telecommunications remains as a key input factor in economic growth. “Telecommunications is a facilitator of socio-economic advancement and is a critical utility for economic development, much like water and energy,” the report said.

Insight Research also finds that wireless makes the strongest showing while wireline follows a distant second. Broadband services are expected to bring majority of growth in both sectors, with wireless broadband service revenues expected to grow at a compounded rate of more than 62 percent over the forecast period, while wireline broadband services grow at a six percent rate over the same forecast horizon.

“While there are indications that the worst of the economic turmoil is past, job creation still remains elusive,” says Insight president Robert Rosenberg, in a release. “Yet even amidst the uncertainty, we expect the telecommunications industry to continue growing.”

“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,” Rosenberg added.

In October, Analysys Mason released a report finding that 3G networks and mobile data services will prop up the worldwide telecommunications market, prompting it to grow at a 6 percent CAGR to reach $2.4 trillion in revenues in 2013, TMCnet reported.

The analyst firm predicted that mobile data traffic will grow at a 131 percent CAGR through 2013. Main reasons for this growth are the expected 3G network deployments in many emerging markets, such as China and India, and the emergence of Long Term Evolution technology in most mature markets during the next few years.

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