Report: Despite economic turmoil, worldwide telecom industry growing at double-digit rate
Despite unsteady global financial markets, the worldwide telecommunications industry will continue to expand over the next five years as growth of wireless services in emerging markets offsets the spending slowdown in the advanced economies, says a market analysis report Insight Research.
Despite the unsteady state of the global financial markets, the worldwide telecommunications industry is expected to continue expanding over the next five years as growth of wireless services in emerging markets offsets the spending slowdown in the advanced economies, says a new market analysis report from The Insight Research Corp. According to the new industry market study, overall telecommunications services revenues are expected to grow at a compounded rate of nearly 13.8% over the next few years, reaching $3.7 trillion by 2015.
"The 2010 Telecommunications Industry Review: An Anthology of Market Facts and Forecasts" notes that wireless makes the strongest showing while wireline follows a distant second. Nearly all of the growth in both sectors is expected to occur in broadband services, with wireless broadband service revenues expected to grow at a compounded rate greater than 62% over the forecast period, while wireline broadband services grow at a 6% rate over the same forecast horizon.
The review states that even amidst the current economic uncertainty the fact remains that telecommunications is a key input factor in economic growth. Telecommunications is a facilitator of socioeconomic advancement and is a critical utility for economic development, much like water and energy, according to the analyst firm. It is on the basis of telecommunications as a lynchpin in the eventual economic recovery that Insight Research projects continued carrier revenue growth.
"While there are indications that the worst of the economic turmoil is past, job creation still remains elusive. Yet even amidst the uncertainty, we expect the telecommunications industry to continue growing," says Insight president Robert Rosenberg. "Telecom is as necessary to development as roads and bridges, so we expect it to fare much better than other economic segments that may take longer to return to normalcy," Rosenberg concludes.
An excerpt, table of contents, and ordering information for this market research study of the global telecommunications industry are available online at http://www.insight-corp.com/reports/review10.asp.