$200bn of new revenues up for grabs in telecoms sector, says Ovum

There will be $213.8bn of new revenues up for grabs in the telecoms sector between 2012 and 2015, thanks to high growth in a number of segments, according to Ovum. In a new report, the independent telecoms analyst states that 11 telecoms segments will experience rapid growth and burgeoning revenues, which players can capitalise on.

"Telecoms operators around the world face a common challenge - maintaining positive revenue growth in the face of declining voice services and a maturing data market," said John Lively, Ovum Chief Forecaster and author of the report.

"They can successfully manage this transition by identifying and then capturing a part of the higher-growth segments. Securing some of this growth is imperative for players to avoid the consequences of stagnating revenues."

The high-growth segments identified by Ovum include mobile broadband, which will generate new revenues of $92bn between 2012 and 2015, and fixed broadband, which will see new revenues of $51bn for the same period. For both fixed and mobile operators, broadband services represent the largest and most important new revenue opportunity available to offset declines in voice and other legacy services. Combined, they will generate approximately $267bn in revenues for service providers globally in 2011, and this figure is projected to grow to $409bn by 2015, said Lively.

According to the report, for retail operators, other key growth areas are managed and hosted IP voice, which will see $9.2bn of new revenues between 2012 and 2015, enterprise ethernet services ($18bn), and consumer services such as digital music downloads and subscriptions ($11.5bn) and IPTV (internet protocol TV) ($20bn).

Lively commented: "In the consumer segment, telecoms companies will be competing with new over-the-top players, as well as traditional competitors. Adopting a marketing approach that is tailored to consumer services will be key to success in this sector." Meanwhile for infrastructure vendors, IP/Ethernet switches and routers, ROADMs, and 40G/100G networking gear are key growth areas, together contributing $7.7bn between 2012 and 2015. Network-related services are also expected to outpace the market, generating approximately $8bn in additional sales. For optical components vendors, demand will continue to be more volatile than other segments, but 40G/100G components represent a key growth opportunity here as well.

Lively added: "Infrastructure vendors must be well positioned in one or more of the high-potential product segments, and in the higher-growth regions, to gain revenues above the industry average. A key challenge will be maintaining a low-cost operational focus, while investing sufficiently in leading-edge technology development.

"Component makers should expect continued high volatility in market demand. Winning a piece of the 40G and 100G technology wave will be essential to avoid being left behind by their competitors."