Spending on telecommunications services and pay TV services in the Americas is expected to grow at .2% per year through 2022, according to a pay-TV and telecom spending forecast from International Data Corporation (IDC).
On a worldwide basis, spending on telecommunications services and pay TV services reached $1,662 billion in 2017, an increase of 1.4% year over year (in constant dollar terms), according to the researchers. IDC believes that the growth rate will accelerate to 1.6% in 2018, bringing worldwide spending on telecom and pay TV services to $1,689 billion. The market is forecast to continue its positive growth until the end of the five-year forecast period (2018-2022), growing at a compound annual growth rate (CAGR) of 1.1%.
On a geographic basis, the Americas will remain the largest services market until the end of the forecast period in 2022. Data services, rather than traditional telecom services, are leading the spending now, according to IDC. So telecom providers who want to grow will need to focus in this area.
Telecom Spending Forecast
“Growth in telecom revenues requires innovative strategies and tactics and a steadfast approach to the market,” said Denise Lund, IDC director, mobile enterprise research at IDC, in a prepared statement. “Establishing and growing a base of connections has never been more challenging, yet it is critical to communications service providers that want to claim a stake in the future revenue growth opportunities.”
Worldwide spending on telecommunications services and pay TV services reached $1,662 billion in 2017, an increase of 1.4% over 2016, according to IDC.
“The global telecoms market will maintain steady growth of 2% over the forecast timeframe of 2018-2022,” said Courtney Munroe, IDC group vice president, worldwide telecommunications research, in a prepared statement. “Service providers are in transition, facing a flat voice market, but steady growth in fixed and mobile data services. Fixed data services will grow by 4% due to strong demand for broadband, Ethernet, and high-speed fiber connectivity. While mobile voice revenues are declining, this sector will be sustained by strong growth in data and other services.”
We reported late last year that the cloud and an array of emerging technology will drive significant growth in worldwide communications spending through 2021.
Additionally, mobility spending continues to grow strongly, we reported a couple of months ago.
