Skip to main content

Telecom Infrastructure Investment will Drive Growth

Across the globe, there is a delicate balance between sustained investment in essential infrastructure and a corresponding advance in socioeconomic progress. Telecommunications platforms have become the driver of growth in the twenty-first century.

It's now the forward-thinking key performance indicator that all economists must monitor, in addition to the GDP.

Infonetics Research has released excerpts from its latest market study, which analyzes global and regional market trends and conditions affecting telecom service providers, enterprises, subscribers, and the global networked economy.

"As 2012 ended, Europe's crisis remains un-contained and is now spreading to Germany. The potential of shaking business confidence everywhere in the world has risen to new heights, and the IMF lowered its growth forecast and is warning of recession risks due to downward revision of global GDP, which now stands at 3.3 percent," said Stephane Teral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

Economic readings are worrisome nearly everywhere except the U.S. market, but so far the impact on global telecom and enterprise technology spending is not severe. As a result, Infonetics has forecast capex to grow nearly 4 percent in 2012 -- when compared with 2011.

Moreover, with the announcement of AT&T's and Deutsche Telekom's significant multi-billion dollar infrastructure investment plans, capex outlay looks brighter in 2013.


Highlights from the latest market study include:
  • Globally, mobile service revenue is the main growth engine in the overall telecom/datacom market, up 4.3 percent year-over-year in the first half of 2012.
  • User mobility, specifically BYOD anywhere, is putting pressure on carriers to move to a single network for fixed and mobile access, internet traffic, and private/premium services.
  • Data traffic growth is outstripping transport equipment costs: traffic is climbing 29 percent annually while equipment costs are falling 10 percent.
  • Software-defined networks (SDNs) are here to stay, but not today: SDNs are on service providers' minds, but it is a longer-term challenge to find implementations of hybrid SDN and non-SDN in live networks.
  • The phase out of stimulus monies and pressure on government budgets is decreasing public sector spending and taking a bite out of overall enterprise growth.
  • With security top of mind due to unprecedented threats and the growing BYOD trend, businesses everywhere are looking to integrate security into everything from smartphones to routers and switches, and are evaluating data center security appliances, cloud security services, and security for virtualized environments and public and private clouds.

Popular posts from this blog

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth
Read more

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul
Read more

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year
Read more