2009: Worst year for telcos

Published by rudy Date posted on September 22, 2010

Global telecoms revenue will bounce back this year, thanks to a strong rally in the mobile sector, telecoms analyst Ovum said.

New figures released by Ovum’s Global Telecoms Analyzer showed that telecoms service provider revenues only grew by 2.2% year-on-year in 2009.

This was the worst growth in a decade and evidence that the telecoms industry finally succumbed to the impact of the global economic downturn.

But the mobile sector has returned to healthy growth, sufficient to overcome the steady decline in fixed line services. Total revenues, as reported by service providers, will grow by 6%in 2010 and a CAGR (compound annual growth rate) of 5% by 2014.

“Globally, mobile is keeping telecoms buzzing,” John Lively, chief forecaster at Ovum, said.

“In 2010, China and India alone will add 329 million new mobile phone connections, equivalent to more than the combined total population of Germany, France, Italy, Spain and the UK.”

The Global Telecoms Analyzer brings together Ovum’s expert forecasts of the telecoms market. It lets users search for, chart, and download forecasts for the mobile, fixed, consumer, enterprise, infrastructure and components market segments.

It shows that fixed line services will continue to decline although fiber connections for broadband services will increasingly be important for telcos.

Overall, the number of fixed lines worldwide will fall from one billion in 2010, to 871 million by 2014. Fixed line services revenues will also fall from around $350 billion to $283 billion, for the same period.

Meanwhile, mobile phone connections will increase from 5.3 billion in 2010 to 7.1 billion in 2014, with the emerging markets of Asia and Africa contributing much of the growth. Revenues from mobile phone services will increase by nearly $100 billion in the three years to 2012.

“While fixed voice lines and revenues will continue declining due to mobile substitution, fixed revenues overall will benefit from the growth in broadband services (internet access, video, and VoIP), enabled by continued deployment of fiber-to-the-premises networks,” added Mr. Lively.

Ovum is the ICT advisory brand of the Datamonitor Group, with a 25 year history of advising both enterprises and their suppliers on the business value of ICT.For inquiries on Ovum, please contact Tanisha Kuckreja at tanisha.kuckreja@ovum.com.

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