Mobile and fixed broadband identified as key growth markets

Wednesday, October 12th 2011
Telecoms operators have been urged to take advantage of new opportunities in the fixed and mobile broadband markets.
Mobile and fixed broadband identified as key growth markets
Mobile and fixed-line broadband revenues are set to grow significantly over the coming years, according to Ovum.

The independent analyst identified the two technologies as "high-potential telecoms segments" and claimed they will experience growth between 2012 and 2015.

Over this period, mobile broadband is expected to generate new earnings of billion (£59 billion), while fixed connections are set to attract billion in additional revenues.

Managed and hosted IP voice services, digital music subscriptions and internet protocol TV were among the other segments picked out as likely to enjoy substantial growth.

In total, Ovum predicted 11 areas of the telecoms market are set to experience "rapid growth and burgeoning revenues", which industry players will be able to capitalise on.

John Lively, author of the report and chief forecaster at the organisation, said the need to maintain positive growth despite a "maturing" data market and falling use of traditional voice services is a common challenge facing all telecoms operators.

Securing a chunk of the new revenues available from these 11 growth segments is "imperative" if providers are to successfully manage this transition, he insisted.

"For both fixed and mobile operators, broadband services represent the largest and most important new revenue opportunity available to offset declines in voice and other legacy services," Mr Lively added.

His predictions come just a matter of weeks after Ovum claimed earnings from consumer fixed broadband connections are in line to overtake the amount generated by fixed-line voice usage for the first time in 2012.

Next year, takings from home broadband lines will reach 0.5 billion, while voice services are set to decline to 8.6 billion from 6 billion in 2011.

Ovum analyst Charlie Davies warned: "Broadband revenue growth alone will not be sufficient to offset the decline in fixed voice revenues due to the investment needed for next-generation access networks and software."

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