SIP Trunking Featured Article

July 23, 2014

Share of Telecommunication Revenue is Shifting, but That isn't the Problem

By Gary Kim
Contributing Editor

As has been the case for at least a decade, aggregate global telecom revenues hide regional differences.  

The global telecommunications business will generate $2.15 trillion in revenue in 2014.

At the global level, CMR projects that global telecommunications service revenues will grow from $2.1 trillion to $2.4 trillion at a CAGR of 2.1 percent.

There are two types of revenue shifts. First, the share of global activity is shifting, as more users in Asia Pacific, for example, become mobile customers.

The policy and business impact, though, is caused in regions where telecom revenue is declining, or might decline. So far, that is a problem primary in Europe, where absolute revenue is falling, and where revenue growth rates are negative.

Virtually everywhere else, revenue is growing.

North America will see its share of global telecommunications spending decline from 24.5 percent of total global revenues today, to 24 percent by 2019.  

Europe, the Middle East and Africa also see its share of global telecommunications spending decline, from 28.5 percent of total global revenues today to 26.6 percent by the end of the forecast period, largely, one might argue, because of declines in Europe.

The Asia Pacific region will gain a larger share of global telecommunications spending, increasing from 38.9 percent of total global revenues today to 40.9 percent by 2019.

Latin America will gain a larger share of global telecommunications spending, increasing from 8.1 percent of total global revenues today to 8.5 percent by the end of the forecast period.

Asia-Pacific is the largest region, as measured in telecommunications spending, representing 38.9 percent of total global revenues. European, Middle East, and Africa (EMEA), the next largest region, represents 28.5 percent of total global revenues.

North America represents 24.5 percent of total global revenues, while Latin America, the smallest region, represents 8.1 percent of total global revenues, according to CMR.

Edited by Adam Brandt
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