Skip to main content

Telecom Sector Challenges and Opportunities in 2013

The legacy telecommunications sector was challenged continuously by upstarts during last year, as these savvy over-the-top companies targeted the incumbent's customers with attractive offers. That being said, 2013 will be equally challenging.

Global telecom service provider revenues exceeded $2 trillion in 2012, with 60 percent of that amount going to mobile network operators, according to the latest market study by Ovum.

No doubt, more competitors will seek to tap that huge market in 2013.

While overall revenue growth is expected to be minimal, Ovum believes some segments will still have above-average growth, and significant incremental revenues over the next five years at each level of the value chain.

Ovum's global analysts have revealed that mobile broadband presents the single largest opportunity for legacy service providers to win back revenue. Their forecasts show mobile broadband growing 19.2 percent annually and generating $122.9 billion in incremental revenue between 2013 and 2016.

Other segments with double-digit revenue growth over the next five years include public cloud, enterprise Ethernet, IPTV, and managed or hosted IP voice.

"The recovery from the 2009 recession has been weak, and the ongoing global fiscal crisis continues to present a risk to the telecom industry," said John Lively, chief forecaster at Ovum.

Over the next 3–4 years, both fixed and mobile network operators will face the same fundamental challenge -- to increase new sources of revenue fast enough to offset the decline in mature legacy services.

In the consumer segment this will involve competing with new over-the-top players as well as traditional competitors. To meet this challenge, Ovum recommends adopting consumer-services marketing approaches.

For infrastructure vendors, increases in overall capital expenditures will be limited by low single-digit gains in service provider revenues.

To grow revenues faster than the industry average, Ovum recommends that vendors position themselves in one or more high-potential product segments -- such as converged packet optical, ROADMs, 40G/100G networking gear, carrier Wi-Fi, and network-related services.

Ovum also warns telecom component makers to expect continued high volatility in market demand -- higher highs and lower lows than their customers or end customers are experiencing.

"This can be mitigated to some degree by forming close relationships with infrastructure vendors and jointly understanding the end customer needs and plans," suggests Lively. "Plus, winning a share of 40G and 100G business will be essential to avoid being left behind by competitors."

Popular posts from this blog

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Warehouse Robot Deployment Gains New Momentum

The retail and wholesale back-office infrastructure market is being transformed by technology. The warehousing industry has accelerated automation efforts due to the increased order volume and labor shortages driven by the global pandemic. In addition to technology solutions such as handheld devices with enhanced capabilities, autonomous, collaborative, and mobile robots are proving to be the fastest-growing productivity-enhancing solution in the warehouse workspace. Commercial Robotics Market Development According to the latest worldwide market study by ABI Research, global commercial robot revenue in warehouses will have a Compounded Annual Growth Rate (CAGR) of over 23 percent from 2021 to 2030 and exceed $51 billion by 2030. "Mobile robots are at the heart of the warehouse robotics market and account for most shipments and revenue. These robots, made up of Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), are being used to move goods within the warehouse a

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g