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Report predicts telco IT spending to reach US$60 billion in 2017

The global telecoms industry’s revenues will remain roughly flat over the next few years, with a decline in spending on voice services counterbalanced by growth in spending on mobile and fixed (broadband) data services, according to...


October 3, 2013  


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The global telecoms industry’s revenues will remain roughly flat over the next few years, with a decline in spending on voice services counterbalanced by growth in spending on mobile and fixed (broadband) data services, according to global analyst firm Ovum.

In a recent market forecast analysis report, it found that as growth slows, market realities mean telcos must find ways to serve their existing customers profitability rather than simply growing their customer bases.

Shagun Bali, analyst for Telecoms Technology at Ovum and author of the report said, “over the next five years, service and tariff innovation will be key revenue-generating strategies, while LTE rollout, network optimization, and creative approaches to partnerships will become focal points for cost savings. “Telcos need to monetize new business models, leverage customer data by investing in analytics, and define their response to over-the-top (OTT) players.”

Ovum estimates that telco IT spending will reach US$60 billion in 2017, growing at a CAGR of 0.6% between 2013 and 2017. Growth in telco IT spending will be driven primarily by investments in packaged software and system integration.