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Ovum: Telco Service Provider Revenues Could Top $297 Billion by 2020

Independent global analyst firm Ovum has predicted that telecommunications service provider revenues will increase at a 9.9 percent compound annual growth rate (CAGR) between 2015 and 2020 to more than $297 billion. Here's everything you need to know.

Dan Kobialka

July 14, 2015

2 Min Read
David Molony principal analyst for Ovum39s enterprise practice
David Molony, principal analyst for Ovum's enterprise practice.

Global managed telecommunications service provider revenues could grow significantly over the next few years, according to Ovum.

The independent global analyst firm has predicted that telco service provider revenues will increase at a 9.9 percent compound annual growth rate (CAGR) to more than $297 billion worldwide between 2015 and 2020.

Other Ovum predictions include:

  • The biggest growth areas for telco strategic services are Latin America (17.8 percent CAGR), Africa (17.5 percent), the Middle East (16.4 percent) and Central Asia (13.0 percent).

  • The big markets of 2015 – Europe and North America – will grow more slowly but will still be the largest in 2020.

  • More telcos could offer enterprise managed services through dedicated business units or divisions and challenge or partner with systems integrators and IT service providers in the large enterprise sector. 

In addition, Ovum noted that information and communications technology (ICT) services such as unified communications (UC) “represent the new generation of dedicated IT and IP communications services that [telco] service providers are able to offer under contracts with enterprise customers.”

“Telcos have relied on adapting traditional voice and data services to serve increasingly complex enterprise business users, but now have a powerful range of ICT services that have been integrated across the operators’ global networks,” David Molony, principal analyst for Ovum’s enterprise practice, said in a prepared statement. “Telco revenues from strategic ICT services are growing faster and, according to our calculations, will overtake legacy service revenues in 2018.”

Molony also noted that telco service providers could control 18 percent of the global ICT services market by 2020, up from 14 percent this year.

Ovum’s predictions are based on data from more than 9,000 managed services contracts between telco service providers and enterprise customers worldwide.

What are your thoughts on Ovum’s predictions? Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at [email protected].

About the Author(s)

Dan Kobialka

Contributing writer, Penton Technology

Dan Kobialka is a contributing writer for MSPmentor and Talkin' Cloud. In the past, he has produced content for numerous print and online publications, including the Boston Business Journal, Boston Herald and Patch.com. Dan holds a M.A. in Print and Multimedia Journalism from Emerson College and a B.A. in English from Bridgewater State College (now Bridgewater State University). In his free time, Kobialka enjoys jogging, traveling, playing sports, touring breweries and watching football (Go Patriots!).  

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