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

Global Rise of Domestic Payment Ecosystems

Alternative Payment Methods (APMs) – comprising digital wallets, instant payments, and QR payment systems – are experiencing explosive growth that's reshaping the global financial services marketplace. According to the latest worldwide market study by ABI Research , the combined global transaction value for APMs is projected to reach $142 trillion by 2030. What's particularly fascinating is the underlying driver behind this trend: a growing desire for financial sovereignty, with nations developing domestic payment ecosystems rather than remaining dependent on international financial networks. Payment Ecosystem Market Development In 2024, approximately 45 percent of the global population used digital wallets – a remarkable adoption rate for a technology that barely existed a decade ago. China leads this transition, with 95 percent of its population using WeChat's payment functionality. WeChat exemplifies the "super app" phenomenon, where payment capabilities are in...