Skip to main content

Telecom Services Market Tops $1 Trillion

The combined telecom services market of the 31 OECD countries has likely topped $1 trillion in the past year, with OECD figures showing it reached $946 billion in value by the start of 2004. The organisation's Communications Outlook 2005 also found that the sector was growing around 10 percent annually, implying that the $1 trillion milestone was passed some time in the past 12 months.

Unsurprisingly, the US dominates the rankings accounting for $357 billion of that total - an enormous 38 percent share for a group that includes 31 countries. Rankings don't always conform to GDP size - Japan is next with a $139 billion market, followed by the UK with $83 billion, Germany with $77 billion and then France with $39 billion.

The report also found that levels of competition are still erratic across countries: the UK shines on this count with 102 carriers, and new entrants taking 16.9 percent of access lines (number one in the OECD) and as much as 64 percent of international minutes. Neighbouring Ireland flunked on the competition front, with just four carriers and new entrants struggling to secure more than one in five long distance and international minutes.

In a press release accompanying the report, the OECD said the growing popularity of Internet telephony threatens the fixed-line revenues of traditional carriers, especially for international calls, the OECD report concludes. In addition, however, VoIP presents a challenge to mobile telephones, which in many countries are now more numerous than fixed connections.

Popular posts from this blog

Why Every Tech Vendor Needs a Real AI Story

Every product roadmap conversation with a technology vendor now runs through one filter that has nothing to do with the roadmap itself: does the company have an AI story that a buyer's finance team would actually underwrite. Forrester Research just gave that gut check a formal structure. Its newly introduced AI Disruption Model evaluates 17 technology and service categories, spanning more than 200 individual markets, against nine factors including AI substitutability, labor intensity, and switching costs. The finding that should reorder tech vendor strategy conversations this quarter is not which markets grow. It is how few of them do, and what that scarcity means for everyone else. Only Three Categories Get an Unambiguous Green Light According to the research, infrastructure providers such as cloud platforms, data centers, and storage; data and AI providers spanning models, platforms, and governance tooling; and cybersecurity and identity providers covering zero trust and AI agent...