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Telco revenues grew to almost $2 trillion in 2011

31 января 2012

Telecoms service provider revenues grew by 7% to US$1.96 trillion, but growth rates will slow considerably over the next five years, according to Ovum.

A new report published by the analyst firm on Monday showed that service provider capital expenditure also saw strong growth last year, up 12% to $314 billion.

"2011 represents a good bounceback for the industry," said Ovum principal analyst and report author Matt Walker, in a statement.

Mobile operators accounted for a 56% share of total service provider capex in 2011, a figure Walker predicts will grow to 62% in 2017.

However, Ovum forecasts that during the 2012-2017 period revenues will increase at a compound annual growth rate (CAGR) of 2.9%, somewhat slower than 6.3% CAGR recorded in 2004-2010. It's a similar story for capex, with the CAGR slowing to 3.1% in 2010-2017, from 6.5% in the earlier period.

"Macroeconomic weakness is constraining topline service provider revenue growth," warned Walker. "Service providers are coping with this reality by aggressively attacking their cost structure, both capex and opex," he said.

Indeed, he notes that telcos will increasingly turn to cost-control tools, such as network-sharing, software-based network elements, and pay-as-you-grow contractual terms. He also suggested that joint procurement and M&A will also be important.

Источник: Total Telecom

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