A new report has revealed growth for the telecommunications industry is slowing, with the industry’s worldwide revenue due to increase from USD 2.1 trillion in 2014 to USD 2.4 trillion in 2019 at a Compound Annual Growth Rate of 2.1 percent.
While the industry is still growing, the rate of growth has slowed more significantly than was previously predicted a year ago. Home disconnections and lower business spending in the US have contributed to fixed revenue declines for the major telecommunication firms, and slower economic growth for the industry is also predicted across Europe, Asia, and Latin America. Despite the deceleration in growth for the industry as a whole, newer technological sectors such as Ethernet, cloud storage, and mobility solutions, are predicted to show double-digit annual revenue growth, and data traffic in these sectors is expected to double every two years.
The report adds that wireless subscriber growth in addition to rising smartphone and tablet traffic could raise global wireless revenues by up to 17 percent from current levels, compared to wireline revenue predictions of just four percent, as an increasing number of users switch to mobile services. Luke Webber, Associate Director for Executives Online, said: “The changing financial trends in the telecommunications industry reflect an evolution of the industry as a whole, as our methods of communication and data storage continue to change.
“As the focus of the industry moves towards new methods of communication; such as internet phone apps, and new data storage in the form of cloud computing, companies will have to change their business models to meet with this new focus. Executives Online has extensive experience in the telecommunications industry, and can provide highly experienced senior managers who can help to train, recruit, and manage staff to ensure clients remain up to date, and ready to take advantage of the latest trends breaking within the industry.”