Telecom demonstrating steady growth
The global telecom industry is demonstrating steady growth, although its rates aren't high, according to analysts of International Data Corporation (IDC).
They are expecting global spending on telecom and pay TV services to rise 0.8% year-on-year to $1.633 billion in 2019. A 0.9% year-on-year growth to $1.647 billion is expected in 2020.
Mobile service remains a major telecom segment. It will account for over half of the market (52.8%) in 2019. This segment will be demonstrating an average 1.3% growth per annum due to the expansion of mobile data transfers and M2M projects compensating for the reduced spending on voice and text message services.
According to IDC forecasts, the global spending on fixed-line communication services will be annually increasing 3.3% due to the demand for high-speed internet plans.
Fixed-line internet service will account for 21.7% of market revenue in 2019. The share will be growing 2.6 % on the average in the period until 2023. Meanwhile, spending on traditional telephony will be reduced by average 4.8%, and its share in the spending structure will amount to only 8.5% in 2023, in the opinion of the IDC. The experts believe that the reducing interest in traditional telephone service will not be compensated by the broadening use of IP telephony.
No significant growth is expected on the pay TV market, which comprises cable, satellite, IP, and terrestrial digital television, within the next five years. At the same time, pay TV remains an important part of the multi-play service package (which means a model providing the customer with several services via one broad-band access line). According to the IDC, the spending on such package services increased 7.1% in 2018, and an average growth of 3.7% is expected in the next five years.
North and South America remain the leading regional markets. Their spending on telecom and pay TV services will reach $630 billion in 2019.
The Asia Pacific region ranks second in terms of telecom spending, and the EMEA (Europe, the Middle East, and Africa) ranks third. The highest growth rates are expected in the EMEA (+1.3% in 2019) thanks to the emerging markets.
The telecom service market of North and South America will grow 0.7%, and the Asia-Pacific market will be up 0.6% in 2019.
According to the forecast of the Analytical Credit Rating Agency (ACRA), the volume of the Russian telecom market will be growing 2.7% per year, and the growth rates will gradually slow down by 2022.
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