According to Research and Markets, the global telecom services industry is expected to reach $1,776.7 billion in 2017, at a compound annual growth rate of 3.8 per cent during 2012-2017.
Over the next few years, the telecom services industry is expected to witness encouraging growth with growing popularity of mobile VoIP applications for increased usage of wireless services through smartphones. Going forward, wireless and broadband are going to be the two fastest growing segments for telecom services. Widespread deployment of network technologies such as high speed packet access and long term evolution provide high capacity, speed, and cost efficiency thereby enabling mobile broadband development. Companies driven by innovations in technologies are expected to gain market share globally.
The research firm states that over the last five years increased demand for high speed internet access and bandwidth in untapped emerging markets have been the key growth drivers for the telecom industry. Further, following the credit crisis in the United States and increased subprime lending in 2009, the global economy rebounded in 2011 due to increased disposable income and spending growth in advanced technologies, industry push by government stimulus packages, and foreign direct investment boosted the industry growth.
In future, increasing disposable income, demand for high volumes of data application, increasing demand of 3G, EDGE, and 4G technologies, convergence of services, and competition for access in homes and businesses are going to be the major drivers for the industry. Meanwhile, the telecom industry is expected to face certain challenges such as increased regulatory compliance, rapid deployment of new service bundles, growing demand for innovative products and services, customer acquisition and retention, and increased network traffic.
