Telecom Industry Revenue to Reach $1.2 Trillion in 2006 Print E-mail

Written by Alejandro Alfonso
Monday, 19 December 2005
A new market analysis by Insight Research predicts that telecommunications-industry revenue will reach $1.2 trillion by the end of next year, and grow by a compounded rate of 5.9 percent to $1.6 trillion by 2010.

The study, “2006 Telecom Industry Review: An Anthology of Market Facts and Forecasts,” says wireless revenue will account for 49 percent of the total market by the end of 2006, rising to 55.6 percent by 2010. By the start of next year, more than 1.8 billion people all over the world will be using mobile wireless phones, the report notes.

Gartner, another industry research firm, reported a rise in cellular phone sales this year. (See Motorola Boosts Share as Global Cellular Sales Jump, Says Gartner.)

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The Insight study shows certain segments of the industry are experiencing rapid growth, including VoIP, Wi-Fi, IMS, streaming video, and fixed-mobile convergence. Other reports show that sales of wireless-enabled customer premises equipment designed to support some of these technologies are on the rise. (See Report: CPE Market Grows Nearly 20 Percent.)

The report also cites technical innovations such as grid computing, and DWDM and WDM in fiber optics, as factors driving industry growth.

The report points to a significant but inconsistent turnaround in the industry. “The malaise of the past few years is finally beginning to dissipate, and while we see an industry-wide return to historic levels of growth, we anticipate that growth will be uneven across various geographic regions and product types,” said Insight Research president Robert Rosenberg. “Asia-Pacific and Latin-America/Caribbean are forecasted to enjoy the fastest overall broadband growth, while North America and Europe lag. Wireless communications will continue to displace wireline communications for voice calling and as the number of wireless 2.5G and 3G data services increases, wireless will continue to squeeze traditional landline calling.”

Even reports that established markets are seeing a decline in new subscriber revenue are laced with news of developing markets that are expected to explode in the next few years. (See Strategy Analytics: ARPUs Fall Further in U.S. Wireless Market.)

But overall, analysts are expecting the trend of wireless communications growth to continue as providers continue to build out networks of every sort. (See Report: ABI Predicts Tremendous Growth in Mesh Network Market.)

Read the full release at Insight Research Corporation.

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