World telecoms market set for 6% growth a year

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World telecoms market set for 6% growth a year

Global telecommunications revenues are growing at a healthy 6% a year and will rise from around $1 trillion this year to $1.3 trillion in 2007, according to a report by Pyramid Research.

The report, titled Worldwide Telecoms Revenue Forecasts and Analysis 2002-2007, covers 85 countries and will be published next Tuesday.

Connections are rising faster than revenue, with global mobile connections growing by 9% a year, and broadband connections by 25% a year, according to Pyramid. This means that average revenue per user will gradually fall over the next five years, creating a "margin crunch" for operators.

Varying growth rates between regions will mean that global telecoms spending in 2007 will show a considerably different pattern.

In 1999, North America accounted for 36% of telecoms revenue, ahead of Western Europe with 29% and Asia-Pacific with 23%. In 2007, Asia-Pacific will be the biggest market, with 35% of telecoms revenue, ahead of North America's 30% and Western Europe's 19%.

Pyramid predicted that central and eastern Europe would almost double its percentage of global revenue, from 3% in 1999 to 5% in 2007.

Pyramid Research is the communications unit of the Economist Intelligence Unit, which is a subsidiary of the Economist Group.

Telecommunications revenue by market share
North America:
36% (1999); 30% (2007)
Western Europe: 29% (1999); 19% (2007)
Asia-Pacific: 23% (1999); 35% (2007)
Latin America: 6% (1999); 7% (2007)
Central & Eastern Europe: 3% (1999); 5% (2007)
Africa & Middle East: 3% (1999); 4% (2007)

Source: Pyramid Research

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