Wednesday, 04 December 2019 14:52

Global telecoms sector to ‘thrive’ in 2020 Featured

By
Global telecoms sector to ‘thrive’ in 2020 Image David Castillo Dominici, FreeDigitalPhotos.net

The global telecoms sector will thrive in 2020, but individual operators could face challenges, particularly over 5G, according to a new report by The Economist Intelligence Unit.

According to a 14-page report just released by the UK-based The Economist, while demand for telecoms will continue to increase in 2020, next-generation technologies and the pressures of digital transformation will continue to reshape what it means to be a telecoms operator in 2020.

“Consumers and companies will begin to work out the benefits of potentially disruptive technologies, while policymakers will explore their broader ramifications for society. Operators will have to prove they can provide the connectivity required to make a digital future possible, and that they can do so competitively and profitably,” the report says.

And, The Economist says that take-up of mobile subscriptions will continue, with global penetration rising from 119 per 100 people in 2019 to 128 per 100 people in 2020 - with emerging markets in Asia, the Middle East and Africa leading uptake.

Matt Kendall, Chief Telecoms Analyst at The Economist Intelligence Unit, says:“The global telecoms sector can bank on yet more global growth during 2020, but the challenge will be to make that growth profitable. Most subscribers are unwilling to pay more for extra telecoms services or faster speeds. Operators will try to come up with compelling use cases, but many of them are likely to have cut costs during 2020 in order to improve their average revenue per user.”

“Broadband penetration will also rise slightly, from 18 per 100 people to 18.5 per 100 people. This slow growth will reflect the challenge of providing advanced connectivity in markets where costs, pricing and geography are not conducive to investment,” the report notes.

“As investment in advanced connectivity continues, IT spending is set to rise from just over US$2.2trn in 2019 to US$2.3trn in 2020.We forecast that mobile subscriptions will grow strongly in 2020, reaching 7.3bn.”

The report says that growth will be particularly rapid in Asia, the Middle East and Africa, where increased investment in mobile network infrastructure and take-up of budget handsets and smartphones will increase mobile penetration by 11% compared with 2019.

However, in most regions, the report reveals that the number of fixed lines will continue to decline as mobile and internet connections proliferate, the report forecasts

“The sole bright spot will be fixed broadband subscriber lines, which will reach nearly 1.1bn in 2020. Despite this bullish overall outlook, there are risks to these forecasts.

“The ongoing US-China trade war will continue to rumble while Donald Trump remains US president. While trade in goods has been the prime target so far, disputes will increasingly focus on the strategic importance of the ICT sector and cybersecurity.

“The dominance of Chinese manufacturer Huawei when it comes to vital 5G hardware will remain a sore point. More broadly, any escalation in trade tensions could disrupt supply chains and prompt a global economic downturn.

“In that event, the telecoms sector would be hit in any number of ways, including increased costs, a decline in mergers and acquisitions, and, perhaps most crucially, a slowdown in 5G rollout.”

Key forecasts in the Telecoms in 2020 report by The Economist include:

  • Take-up of mobile subscriptions will continue, with global penetration rising from 119 per 100 people in 2019 to 128 per 100 people in 2020. Emerging markets in Asia, the Middle East and Africa will lead uptake.
  • Broadband penetration will also rise slightly, from 18 per 100 people to 18.5 per 100 people. This slow growth will reflect the challenge of providing advanced connectivity in markets where costs, pricing and geography are not conducive to investment.
  • As investment in advanced connectivity continues, IT spending is set to rise from just over US$2.2trn in 2019 to US$2.3trn in 2020.

CHIEF DATA & ANALYTICS OFFICER BRISBANE 2020

26-27 February 2020 | Hilton Brisbane

Connecting the region’s leading data analytics professionals to drive and inspire your future strategy

Leading the data analytics division has never been easy, but now the challenge is on to remain ahead of the competition and reap the massive rewards as a strategic executive.

Do you want to leverage data governance as an enabler?Are you working at driving AI/ML implementation?

Want to stay abreast of data privacy and AI ethics requirements? Are you working hard to push predictive analytics to the limits?

With so much to keep on top of in such a rapidly changing technology space, collaboration is key to success. You don't need to struggle alone, network and share your struggles as well as your tips for success at CDAO Brisbane.

Discover how your peers have tackled the very same issues you face daily. Network with over 140 of your peers and hear from the leading professionals in your industry. Leverage this community of data and analytics enthusiasts to advance your strategy to the next level.

Download the Agenda to find out more

DOWNLOAD NOW!

Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

VENDOR NEWS & EVENTS

REVIEWS

Recent Comments