Global telecom operator revenues exceeded US$2tn in 2012, with 60 percent going to mobile operators, finds Ovum. While overall revenue growth is expected to be minimal, Ovum believes some segments will still have above-average growth and significant incremental revenues over the next five years at each level of the value chain.
In a new report*, the global analysts reveal that mobile broadband
presents the single largest opportunity for telcos to claw back revenue,
as forecasts show mobile broadband growing 19.2 percent annually and
generating US$122.9bn in incremental revenue between 2013 and 2016.
Other segments with double-digit revenue growth over the next five years
include public cloud, enterprise Ethernet, IPTV, and managed/hosted IP
"The recovery from the 2009 recession has been weak, and the ongoing
global fiscal crisis continues to present a risk to the telecom
industry," comments John Lively, chief forecaster at Ovum. "Over the
next 3–4 years, both fixed and mobile operators will face the same
fundamental challenge: to increase new sources of revenue fast enough to
offset the decline in mature services."
In the consumer segment this will involve competing with new
over-the-top players as well as traditional competitors. To meet this
challenge, Ovum recommends adopting consumer-services marketing
For infrastructure vendors, increases in overall capital expenditures
will be limited by low single-digit gains in service provider revenues.
To grow revenues faster than the industry average, Ovum recommends that
vendors position themselves in one or more high-potential product
segments, such as converged packet optical, ROADMs, 40G/100G networking
gear, carrier Wi-Fi, and network-related services.
Elsewhere, Ovum warns component makers to expect continued high
volatility in market demand – higher highs and lower lows than their
customers or end customers are experiencing. "This can be mitigated to
some degree by forming close relationships with infrastructure vendors
and jointly understanding the end customers' needs and plans," suggests