Total telecommunications revenue in Canada; Europe; Middle East/Africa; Latin America; and Asia/Pacific rose 11.4%...
April 12, 2006
Total telecommunications revenue in Canada; Europe; Middle East/Africa; Latin America; and Asia/Pacific rose 11.4% t in 2005 to reach US$1.8 trillion, a second consecutive double-digit increase, according to the Telecommunications Industry Association’s 2006 Market Review and Forecast.
The principal drivers of growth were an expanding broadband market, continued growth in wireless services (fueled both by rising wireless subscribership and growth in ancillary applications such as text messaging and ring tones), increased spending on equipment and higher spending on services in support of that equipment.
Total telecommunications revenue in the five regions is expected to grow at a 10.4% compound annual growth rate (CAGR), reaching US$2 trillion in 2006 and growing to US$2.7 trillion by 2009.
Overall, the five-region investment in equipment — base stations and core network infrastructure equipment, mobile devices, and enterprise voice and data equipment — rose 8.9% in 2005 reaching US$275.9 billion, the largest increase since 2000.
Revenue from public network equipment — central office switching equipment, related central office equipment and wireless infrastructure equipment — increased 14.4% in 2005 to US$71 billion. The enterprise equipment market increased 7.2% to US$205.2 billion.
Landline transport services rose only 1.8% in 2005, the second consecutive year in which growth was less than 2%. The slowdown reflects subscribers’ increasing use of wireless as their sole communications technology.
Meanwhile, the wireless services market expanded 16.6% in 2005. Wireless transport services comprised 47% of total transport services revenue in 2005, up from 26% in 2000.
By 2009, wireless will represent 58% of the transport market, while the landline market will continue to grow at low single-digit rates, averaging 1.3% CAGR to reach US$531.9 billion in 2009, as the migration to wireless continues.
VoIP, however, will enhance landlines’ appeal and will curb the migration to wireless. The overall transport services market will total $1.3 trillion in 2009, up from $955.8 billion in 2005, a 7.1% CAGR.
Further information on the report is available at www.tiaonline.org.