According to a new 2007 Industry Review study from Boonton, New Jersey-based Insight Research Corp., the worldwide telecom industry is in a strong growth mode, and overall industry revenue is expected to climbs to $1.3 Trillion in 2007.
According to the study, strong growth in wireless is leading the way as wireless service revenues are expected to grow at a compounded rate of nearly 10 percent over the next few years, while wireline service revenues grow much more modestly at two percent. 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 of more than 60 percent over the forecast period, while wireline services grow at 10 percent over the same forecast horizon.
The 2007 Industry Review states that in the growth environment set off by the rush to meet subscriber demand for broadband services, service providers are trying to create viable business models on the fly in order to deliver new types of IP-based services, including Residential Video Telephony, Fixed Mobile Convergence, File Sharing/Downloading Services, Audio/Video Streaming Services, Location-Based Services, and Presence-Based Services.
The study highlights rapidly growing industry segments such as VoIP, WiFi and WiMax, fixed-mobile convergence, IMS, IPTV and streaming media, as well as technological innovations such as grid computing and DWDM and WDM in fiber optics. The report also looks at changes in telecommunications buying patterns among enterprises that purchase managed services as well as other communications services.
According to Insight Research president Robert Rosenberg, the telecommunications industry has fully recovered from the malaise of the past few years and is again in a growth mode as it ramps up to build the broadband networks that will provide new service types. But even with the build-outs going full steam ahead, the overall revenue contribution from these new IP services is expected to be modest. Voice still rules, and will for some time to come.
An excerpt, table of contents, and ordering information for the 279-page report are available online here.