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Our Bureau

Coimbatore, Sept. 17 Gartner estimates show that the worldwide telecom market revenue would grow 7.6 per cent this year, and for the first time in history, North America would loose its top position as the largest regional telecom market to the Asia/Pacific region.

The study said that the telecom market was on pace to reach $2 trillion in 2008 compared with $1.8 trillion revenue the earlier year. “Telecom services revenue has traditionally dominated the market, accounting for four out of every five dollars earned in the sector. This historic proportion will now shrink, indicating that legacy revenue is no longer sufficient for carriers to justify their investments. The growing equipment sector is being deployed to support new and converged services,” Principal Research Analyst at Gartner Mr Will Hahn said.

Revenue in the telecom service segment is expected to reach $1.6 trillion this year and account for 81 per cent of the overall telecom revenue.

Gartner forecasts that by 2012, the service segment would have a CAGR of 4.4 per cent compared with 8.7 per cent for the equipment segment.

The ratio of mobile to fixed connections would be 4:1. “We foresee the mobile sector revenue to top $1 trillion by 2010” Mr Hahn said.

The study has revealed that the fixed voice is on the decline and mobile voice, though currently growing, would also stagnate as a proportion of the market by 2012. “The baton has clearly been passed to data services in the legacy sector,” he said.

While the North American telecom revenue has been forecast at $511.6 billion in 2008, in the Asia/Pacific region it is projected to reach $513.1 billion, up 8 per cent from 2007.

Middle East and Africa are expected to be the fastest growing region with a CAGR of 8.6 per cent between 2007 and 2012.

More Stories on : Telecommunications | Marketing Research

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