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Telecommunications Telecoms revenue growth grinding to a halt
Telecommunications Telecoms revenue growth grinding to a halt | Telecoms revenue growth grinding to a halt |
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| Written by Stuart Corner | |
| Tuesday, 03 April 2007 | |
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Page 1 of 2 According to Telsyte "The overall telecommunications market generated revenue of $24.4 billion in 2006, 2.7 percent higher than the previous year." Telsyte managing director, Warren Chaisatien, told iTWire: "In 2005 growth was four percent and in 2004 about five percent and our forecast is that by the end of the decade we will be looking at about one to one point five percent, which means virtually no growth in basic connectivity. That covers all types: leased line, fixed, mobile, broadband, etc." Telsyte estimates total revenue at $24.4 billion in 2006, growing to $26.3b by 2011. By this time, mobile is expected to account for 44 percent, PSTN 28 percent and broadband data services 24 percent. VoIP will account for 4.3 percent. Telsyte found that, in 2006 "the mobile market, with annual service revenue of $9.4 billion, grew to become the largest segment of the telecommunications market, overtaking PSTN market for the first time [in 2006]." However, Telsyte forecasts that "[mobile] voice revenue will peak in 2007, indicating that future revenue and growth will be solely driven by non-voice services, whose share of carrier revenue is forecast to grow from 25 percent this year to 40 percent in five years' time." It says that 3G subscribers quadrupled in 2006 to account 15 percent of the total at the end of 2006, and expects the number of 3G users could double during 2007. Telsyte expects Telstra to have taken the market share lead from Hutchison in the quarter to 31 March. |
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