The global telecom services market is anticipated to show substantial growth over the forecast period owing to technological development and increasing disposable incomes. Increasing preference for bundled services such as data and voice is expected to further drive market augmentation. Additionally, growing adoption of advanced infrastructure such as LTE is expected to fuel the telecom services market. Increasing measures for rural area penetration is also expected to fuel market demand over the forecast period.
Various government initiatives such as nationwide mobile number portability in India are expected to favor market growth. Deployment of Worldwide Interoperability for Microwave Access (WiMAX) services for increased speed is further estimated to fuel market expansion. Initiatives such as infrastructure sharing may provide new growth opportunities to the telecom services market. Increasing Mobile Value-Added Services (MVAS) demand owing to growing youth population may also provide positive avenues to overall market demand. Data and Over-The-Top (OTT) services are anticipated to be the major market driver over the forecast period. Media/entertainment (including advertisement), cloud computing, Machine-to-Machine (M2M) services, and IT services may provide new opportunities for market augmentation. Additionally, growing use of smartphones and tablets is expected to further contribute to the telecom services market. Strategic alliance of handset manufacturer and service providers may favor market participants to increase their customer base through long-term contract.
Fixed services are expected to show decline owing to increasing mobile connections over the next seven years. Strategic partnership with telecom network equipment market players may provide capabilities to respond to evolving needs and value propositions. Market players are expected to invest in the next generation Operating Support System (OSS) and Business Support System (BSS) solutions to remain competitive in the market. Retaining existing subscribers may become challenge for industry participants owing to decreasing cost to switch to new operator. However, decreasing Average Revenue Per User (ARPU), lack of efficient infrastructure, and high competition may hamper market growth. The global telecom services market can be classified as fixed and mobile telecom services. Increasing preference of internet services such as IPTV and VOIP is expected to market demand over the forecast period. Traditionally, Mobile Service Providers (MPS) offered only voice services. However, new development in technology has led to inclusion of large number of non-voice services. Mobile VAS can be classified into education, entertainment, financial, and health services application.
Asia Pacific is expected to be the key regional market over the forecast period. Personalized data and voice plans may contribute considerably to the regional market. North Korean Government is expected to launch 5G services, which is estimated to provide more efficient services to users and is expected to be rolled out by 2017. In Africa, expanding telecom service penetration in less competitive niche or rural segment may be cost-intensive. However, international sea cable and satellite connectivity have brought down the costs, and improved the international connectivity in Africa.
Major players in the telecom services market include AT&T Mobility, China Mobile, Airtel, Bridge Alliance & Singtel, Vodafone, Idea Cellular, America Movil, Telenor, China Telecom, VimpelCom, T-Mobile, Axiata, and Orange. Market players also provide services such as Telco TV, digital TV, interactive TV, video-on-demand, web TV, wireless services, IPTV, and Internet services to enhance their product portfolio. Market players use various technologies such as Voice Over Internet Protocol (VOIP) and video compression technology development along with existing infrastructure to enhance their service offerings.
In June 2015, AT&T launched U-verse GigaPower in Chicago, which provides ultra-fast Internet access speed up to 1 Gbps, high-speed premier Internet TV, and voice services. Players such as Airtel and Idea are offering customers an option to customize their plans to cater to their needs. Handset manufacturer company, Apple Inc., has formed an alliance with telecom services market players such as AT&T, China Mobile, etc. to offer their customers premium handsets at lower price and retain them for longer time period. In India, Vodafone and Airtel have launched M-commerce applications such as Airtel Money and Mpesa respectively.
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