Global Telecom to Hit $25.6 Trillion by 2016, Insight Research Study Finds

By David Sims, TMCnet Contributing Editor

Despite what Insight Research officials call "the unsteady state of the domestic US economy," the worldwide telecommunications industry is expected to continue expanding over the next five years as "continued spending by consumers and businesses for wireless services, especially in emerging markets, drives industry revenue growth."

At this week’s ITEXPO East, leading companies in the IP communications and telecommunications industry gathered to share and gain insight on selecting the right IP-based voice, video, fax and unified communications solutions to improve their operations. At collocated events such as the Smart Grid Summit, Business Video Expo, M2M Evolution Conference, 4GWE and StartupCamp, attendees learned the latest in telecommunications developments.

A market analysis report from Insight Research finds that telecommunications services revenues on a worldwide basis "are expected to grow at a compounded rate of nine percent over the next five years, bringing the sum spent globally on telecommunications to $25.6 trillion by 2016."

The report, "The 2011 Telecommunications Industry Review: An Anthology of Market Facts and Forecasts," notes that wireless makes "the strongest showing," while wireline follows a distant second. Nearly all of the growth in both sectors is expected to occur in broadband services, the study finds, with "wireless broadband service revenues expected to grow at a compounded rate of more than 45 percent over the forecast period, while wireline broadband services grow at almost a 14 percent compounded rate over the same forecast horizon."

Insight president Robert Rosenberg remarked that "while there are indications that the worst of the economic turmoil on a global basis is past, job creation in the U.S. still remains elusive, and is slowing domestic recovery." Yet even amidst the uncertainty, Rosenberg said, "we expect the telecommunications industry to continue growing. Telecom is as necessary to development as roads and bridges, so we expect it to fare much better than other economic segments that may take longer to return to normalcy."

About a year ago TMC's (News - Alert) Anamika Singh wrote that ?according to a report by Insight Research, despite slowdowns, overall spending by all U.S. businesses on wired and cellular calling will exhibit modest growth over the next five years. 

The study predicts that cellular calling will account for nearly 44 percent of the U.S. corporate phone bill for telecommunication services in 2010.

The objective of this market research report is to examine and quantify the opportunities in various vertical industries for the telecommunications service provider community. Insight examines 14 vertical markets in this report, segmented according to Standard Industrial Classification (SIC) developed by the U.S. Department of Commerce and the North American Industry Classification System (NAICS)

(source: http://telecommunications.tmcnet.com/topics/telecommunications/articles/141571-global-telecom-hit-256-trillion-2016-insight-research.htm)