The telecommunications market outside the United States is expected to continue its double-digit growth from 2004 to reach over $2 trillion by 2008, according to TIA’s 2005 Telecommunications Market Review and Forecast, an annual publication produced by the Telecommunications Industry Association (TIA). Overall spending on telecommunications in the five regions covered in the report — Canada, Western Europe, Eastern Europe, Latin America and Asia/Pacific — will grow at an estimated 10.6% compound annual growth rate (CAGR). The principal drivers for this growth are improving economic conditions throughout the world, a growth in infrastructure equipment investment, demand for mobile devices and wireless services.
The number of wireless subscribers is growing faster than the number of landlines in each region and is expected to reach 1.9 billion in 2008, outnumbering landline subscribers by 69.1%. As wireless penetration grows, the average penetration rate for all regions is expected to reach 44% by 2008.
High-speed broadband access will be a principal driver of equipment revenue in the next four years, helped by increased government support and a stronger economic environment. Broadband access revenue will triple between 2004 and 2008, from US$33 billion to US$101 billion. As the broadband market expands, the need for infrastructure to support the traffic will revitalize the network infrastructure equipment market. TIA expects equipment spending to increase at a 8.1% CAGR, rising from US$238 billion in 2004 to US$325 billion in 2008.
Major international findings included in the report:
* As the migration to wireless, voice over Internet protocol (VoIP) and cable telephony continues, the landline market will increase from $391 billion in 2004 to $422 billion in 2008, averaging only a 1.9 percent CAGR.
* Europe is expected to be the largest region in support services spending, reaching $354 billion by 2008 as the demand for equipment increases demand for services to support that equipment.
* International wireless revenue will expand at an 11.6 percent CAGR from 2005-08, reaching $466 billion in 2008.