2009: Worst Year For Telecoms In a Decade

Global telecoms revenue will bounce back in 2010 thanks to a strong rally in the mobile sector, according to Ovum. New study, ‘Global Telecoms Analyzer’, released by the research firm shows that telecoms service provider revenues only grew by 2.2 percent year-on-year in 2009 – 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 percent in 2010 and a CAGR (compound annual growth rate) of 5 percent by 2014,” the study revealed. According to John Lively, chief forecaster, Ovum, “Globally, mobile is keeping telecoms buzzing. 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 study shows that 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 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. “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,” Lively added.

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