Analysts predict mobile broadband to grow by 19% annually from 2013

Operators worldwide should bet on mobile broadband being their biggest opportunity for revenue for growth for the next three years, according to Ovum, the UK based technology analyst company.

Ovum found that global telecom operator revenues exceeded US$2 trillion in 2012. Sixty percent of these revenues went to mobile operators.

John Lively, chief forecaster at Ovum said “The recovery from the 2009 recession has been weak, and the ongoing global fiscal crisis continues to present a risk to the telecom industry.

“Over the next 3–4 years, both fixed and mobile operators will face the same fundamental challenge: to increase new sources of revenue fast enough to offset the decline in mature services.”

Analysts have revealed that mobile broadband presents “the single largest opportunity for telcos to claw back revenue” according to a new report. Forecasts show mobile broadband growing 19.2 percent annually and generating US$122.9 billion in incremental revenue in the next three years.

Ovum’s analysts also expect public cloud, enterprise Ethernet, IPTV, and managed/hosted IP voice to reach double-digit revenue growth over the next five years.

But analysts at Ovum warn component makers to expect continued high volatility in market demand – higher highs and lower lows than their customers or end customers are experiencing.

“This can be mitigated to some degree by forming close relationships with infrastructure vendors and jointly understanding the end customers’ needs and plans,” suggested Lively.

“Plus, winning a share of 40G and 100G business will be essential to avoid being left behind by competitors.”

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