Abstract
The 2007 Telecom Industry Review summarizes current conditions across the
global telecommunications industry, providing analysis of over a dozen
infrastructure and service segments. From fundamental background issues to
detailed five-year forecasts accompanied by practical strategic advice, this
study provides a sweeping examination of the telecom marketplace.
The Review provides up-to-date information in such key areas as revenue and
performance characteristics of wireline and wireless carriers by global
region, adoption of VoIP and other IP-based services, operations support
systems, gateways and next-generation architectures, cable telephony,
residential and business communications trends, and new opportunities such as
grid computing.
Whether you're an industry veteran or new to telecom, the 2007 Telecom
Industry Review will serve as a frequently referenced yearbook, supplying hard
data and sound analysis on pressing service and equipment issues. Concise,
clear, and current, the review is a detailed strategic tool that amasses a
year's worth of telecom research- over a dozen segments- into one
comprehensive resource.
Report Excerpt
1.1 Telecommunications Industry Economic Conditions
The worldwide communications infrastructure has already started moving
gradually and inexorably in the direction of ubiquitous broadband access and
transport, an adoption that will completely revamp the meaning of what
constitutes a telecommunications service.
An important worldwide trend is the much higher growth rate of wireless
service in comparison to wireline service. Wireless revenues grow from 46.3
percent of all telecommunications services revenues in 2005 to 55.6 percent in
2010- a virtual flip within the five-year period. Wireless service revenues
are growing at 9.9 percent CAGR over the forecast period, while wireline
service, which includes both broadband and narrowband services, grows much
more modestly at 2.0 percent.
Worldwide, broadband service providers of all stripes continue to try to
create viable business models in order to deliver high-speed broadband-
leveraging Internet protocol (IP) packet delivery and management to create and
deliver new services. Overseas carriers are rolling out broadband on a mass
scale, targeting consumers and small businesses, and bundling new premium
services like Voice over IP (VoIP), virtual private network (VPN), video,
games, and entertainment. This worldwide IP-based applications services
market is beginning to take off. The architecture of and market for
next-generation enhanced services is also beginning to take shape.
Yet even as the industry focuses much of its energy on creating the
infrastructure to support a new generation of telcom services, actual revenue
contributions made by IP services represent just 0.9 percent of all global
wireline and wireless telecommunications service revenues forecasted for 2006
and just 5.7 percent of those forecasted for 2011. Thus, while the attention
of the industry focuses on enabling a next generation of services, the revenue
impacts remain modest throughout the next several years.
Traditional carriers see IP application platforms as a means to beginning
their slow migration to fully-convergent IP-based networks and services. Some
view the highly personalized services enabled by IP as the ultimate "sticky"
applications that will stem the tide of customer churn. Other carriers desire
new, affordable service applications that will bring additional revenue
streams. Every carrier is looking for new ways to enhance their service
suites, which are rapidly becoming commoditized.
Interestingly, wireless carriers seem to be making headway when it comes to
the adoption of new architectural and service paradigms. Fundamentally,
wireless operators have had more experience with and greater control over the
content in their networks and have solid billing platforms, both of which
assure content providers of reliable and stable revenues from content provided
to wireless subscribers. Content providers are, therefore, more comfortable
with the wireless domain. Wireline carriers also expect operational and
infrastructure savings from deploying new IP-based services...
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