Global telecom services market to reach over €1,200 billion in 2015
“We have observed that, overall, telecom services are recovering more slowly than the economy as a whole,” reports Carole Manero, head of IDATE’s Telecom Players & Markets report.
Montpellier, 7 May 2013 - IDATE reveals the findings of its world telecom services watch. After a setback in 2009 and very slight growth in 2010, the global market has been inching back to a more solid recovery since 2011, growing by a modest 2.7% in 2012. This translates into telecom services revenue of €1,115 billion for the year.
Now in a recovery phase, telecom markets in advanced countries are proving somewhat resilient, whereas in fast developing markets the increase in volume is so steady that the ripple effect far outweighs any structural obstacles. This phenomenon is telling of a mature industry now driven more by demographics than economics. In Africa/the Middle East, for instance, the drop in regional GDP in 2009 (-6%) and its rebound in 2010 (+16%) had very little impact on telecom services growth rates which remained very high both years: 8% and 9%, respectively.
World telecom services market - 2012
Source : Digiworld by IDATE
Majority mobile access
According to IDATE, the number of mobile customers worldwide should top the 8 billion mark in 2017 (+28.0% in 5 years).
• The number of Internet subscribers will grow more strongly (+37.3 % between 2012 and 2017, +6.5% per year on average), reaching 1 billion by the end of 2017.
• Traditional landlines continue to loose ground in the face of VoIP and mobile.
The spread of broadband
According to IDATE, the number of fixed broadband subscribers is expected to reach 957 million worldwide by 2017, for a penetration rate of 14% of the population. The number of 4G mobile subscribers should experience strong growth.
Two major factors will play in favour of the spread of broadband:
• The success of bundled offers (fixed telephony, VoIP, TV, mobile telephony) and the appetite for video applications.
• The investment of telecom operators in the migration of their infrastructures to mobile or fixed broadband.
Revenues from telecom services
According to IDATE, the global revenues from telecom services will grow from 1,115 billion in 2012 to 1,286 billion in 2017, representing an average annual growth of 2.9% in 5 years.
• Revenues from mobile services will grow by 18.7% between 2012 and 2017 (+3.5 % per year on average), reaching 779 billion EUR in 2017.
• Revenues associated with data transmission and Internet will grow more strongly (+32.8% between 2012 and 2017, i.e. +5.8% per year on average), to reach 329 billion EUR in 2017
• The turnover of fixed telephony will continue to decline significantly (-15.9% between 2012 and 2017, i.e. a decline of 3.4% per year on average), to be at 177 billion EUR in 2017.
Scalability of operators in emerging countries, even if the global top three remains unchanged since 2007
• A single change in the ranking of European operators: Telefonica overtook Deutsche Telekom in 2011: now the leading European operator, the Spanish group ranks fourth in the world.
• Chinese operators regularly win places in the world rankings
• Vimpelcom gained fifteen places in 2011 : Owing to the acquisition of a large part of the shares of Orascom Telecom and Wind, VimpelCom moved from 34th place in 2010 to 19th in the world in 2011
• Several operators from industrial countries "drop out": The Dutch KPN and Canadian ECB fell back by five places in two and a half years and drop out of the top 20
Classement des principaux opérateurs télécoms
Source : Digiworld by IDATE
Five operators in the top twenty worldwide for over 50% of their turnover outside their domestic market:
• Among them, three European operators...
- Vodafone: global operator widely present in Europe, Asia and Africa
- Telefónica: with a widespread presence in Latin America and in some European countries (UK, Germany, Czech Republic, Slovakia)
- Deutsche Telekom: present in Central and Eastern Europe and in several Asian countries
•...and two operators from developing countries:
- America Móvil: present mainly in Latin America (plus participation in Europe acquired in 2012)
- Vimpelcom: already present in Central Asia, with a new presence in Africa and Europe (Italy) thanks to the deal with the Naguib Sawiris group
Chef de projet, IDATE
More information about World Telecom Services
Head of Distribution Video Practice at DigiWorld IDATE
Montpellier, 24 January 2012 – IDATE provides readers of its recently published market report “Hybrid TV Prospects, Impacts of Connected TV”. This study aims to position the hybrid solutions in this new context and to measure their impact on the "big" TV markets.
“Hybrid TV is now a reality. The appealing for OTT video content, amplified by the development of connected TV solutions, is further spurring this trend”, says Jacques Bajon, Head of Distribution Video Practice at DigiWorld Institute. “These developments are attracting the attention of the big Internet companies who will throw themselves into the trend and surely have an impact on the key segments in the video distribution chain.”
IDATE estimates the market for OTT video services on the TV at EUR 3.4 billion in 2015
The market for video services on connected TVs is still only taking shape, as we see the first hints of how players are positioning themselves and how they are structuring their service offerings. Though virtually non-existent in 2010, this market is set to explode. IDATE estimates the market for OTT video services on the TV will be EUR 3.4 billion in 2015, with the following geographic breakdown:
- United States: 40%
- Europe: 24%
- Rest of the world: 36%
Trends in hybrid’s development and positioning of hybrid solutions
Hybrid solutions seem to be positioned in one of four ways:
- Two-way broadcast: The DTT/broadband or satellite/broadband hybrid network is becoming the leading network for distributing packaged on-demand and linear offerings.
- Cable and IPTV extension: DTT/broadband or satellite/broadband hybrid solutions provide additional coverage to the TV offerings of managed network operators.
- Competition with cable and IPTV: The DTT/broadband or satellite/broadband hybrid network offers an alternative to cable and IPTV services.
- Optimization of wired networks: Hybrid solutions help alleviate congestion on wired networks, which prioritize Internet access quality over the distribution of managed video services. The potential of hybrid TV distribution varies by market:
- · In the US, the trade-offs made by cable and IPTV operators will determine the direction the hybrid market takes. Satellite may still capitalize on this solution to counter these operators’ triple play offerings.
- · In Germany, the hybrid TV landscape will primarily depend on how quickly cable migrates to digital and IP. If the current trend plays out, these operators will play a central role along the same lines as their American counterparts. If not, FTA satellite operators will have the trump card.
- · In France, where IPTV penetration is extremely high, hybrid could take multiple forms, depending on operators’ strategies. The situation could go one of two ways—cooperation between wired and broadcast operators to provide additional coverage or close competition between networks where the full IP migration of the wired operators would go up against hybrid’s vague efforts in the FTA DTT TV segment.
- · The UK is the most advanced hybrid market today thanks to the broadcast/OTT combination. This trend will continue, and FTA TV operators will reap the rewards.
- · In Spain, DTT will play a central role. The DTT + OTT combination will dominate, with additional opportunities for wired operators to expand their coverage using the terrestrial network.
- · Italy is the country with the most potential for gain from hybridization. The "absence" of two-way TV networks clears the way for partnerships between OTT and broadcast (DTT and satellite) to dominate.
OTT & Hybrid distribution chain: war-time?
More informations on http://www.Idate.org
Head of Distribution Video Practice at DigiWorld IDATE.
|PR- Emmanuelle Renauld
Presse & Technologies
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Market and forecasts 2010-2015: smartphone and tablet traffic skyrocketing
IDATE has just released its “Mobile Video” report which takes a look at the mobile video market and its different business models, technologies and core devices. It also provides readers with an analysis of the market and forecasts for its development up to 2015, along with key data on the stakeholders, traffic and sales.
“The global mobile video market (cellular networks only) was worth an estimated 4.3 billion EUR in 2010, and forecast to reach 12.6 billion EUR in 2015, which translates into a compound annual growth rate (CAGR) of 24% for the period. The increase is even more impressive when looking at traffic volume (i.e. number of video minutes) which is due to rise at an average annual rate of more than 80% over the next five years. OTT (over-the-top, i.e. online) traffic accounts for the majority of video viewing time on mobile networks: 60% in 2010, and increasing to 70% in 2015,” says Project manager and Senior consultant Samuel Ropert.
Mobile video market in the biggest countries in 2010
The United States and Japan top the ranks of the world mobile video market on cellular networks. Over in Europe, Italy is the biggest market at close to 300 million EUR, followed by Germany. Italy owes its status to heavy take-up levels combined with an attractive selection of content, such as championship football, which stimulates usage and sales revenue. The price of a basic mobile video service is also much cheaper in Italy than in other countries, plus users have the ability to pay by the week and not just by the month as is usually the case.
Japan’s mobile video market is being undermined by the broadcast video market (which is not covered in this report) which is free for users, but which generates hundreds of millions of euros in ad revenue.
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