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Ovum expects steady telecom wholesale revenue growth

July 11, 2014  

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Although the prices of many commodity wholesale services are falling, accelerating traffic volumes will ensure that wholesale revenues will continue to grow, says Ovum.

The telecom analyst firm expects revenues to grow across the globe with Asia-Pacific experiencing the steepest rise due to intensified retail competition in many countries and escalating international traffic.

After analyzing the financial results of more than 200 telecoms service providers, Ovum’s wholesale telecoms team has estimated that the global wholesale telecoms market will be worth US$142 billion in 2019. It will account for 6.6% of total telecoms service provider revenues, up from 5.5% in 2012.

The research firm predicts that strong demand in the Asia-Pacific region will push its share of global total wholesale revenues to 26.0% in 2019, up from 17.0% in 2012.

“The rapid rate of retail service innovation, the growth of voice and data traffic volumes, and the increasing complexity of retail services all depend on an efficient and effective wholesale market because few (if any) retail service providers can do everything themselves,” said David James, practice leader for Ovum’s wholesale research channel and author of the report.

“New types of service provider are emerging, but their need for connectivity will stimulate greater demand for traditional wholesale services, while those telcos that do innovate at a retail service level will create demand from those that do not.”