Blog

Share |
Dec 1
2011

Global Telecom Service Provider Revenue to Hit $2.17 Trillion in 2015

In the 10 years from 2005 to 2015, telecom service provider revenue has shown and will continue to show year-over-year growth every year except in 2009, according to Infonetics.

Following a 4.1 percent increase in 2010 over 2009, telecom service provider revenue will grow 7.6 percent in 2011, to $1.86 trillion. Infonetics revenue forecast.

Telecom carrier revenue is forecast by Infonetics to grow to $2.17 trillion in 2015, driven by mobile broadband. Keep in mind that those are global figures and that growth will vary from region to region.

Is it possible that U.S. service provider revenue could double in just the next five years? Insight Research Corp. thinks so. The firm reports that predicts that, between 2011 and 2016, North American carrier revenue will rise from $287 billion to $662 billion, representing 11 percent compound annual revenue growth. Global Telecom Service Provider Revenue Forecast.

That rapid growth, on a compound basis, would lead to a doubling of industry revenue in five years. That doesn't mean providers in every segment will benefit equally. But a forecast that large would have to assume that most of the growth would have to occur at the largest firms, which represent 80 percent of total industry revenue.

The smaller providers cannot reasonably contribute enough aggregate revenue to tip the needle at such a large scale, even with even-higher rates of growth than 11 percent, compounded. Global carrier revenue is expected to achieve a nine percent compound annual growth rate from 2011 to 2016, growing to a total of $5.13 trillion, according to Insight Research Corp. The forecast explicitly assumes that North American service providers successfully will grow new revenues at a rate fast enough to compensate for weakening voice revenues, for example.  See Insight Research findings here.   

 

Source: Carrier Evolution