Analyst: Mobile services driving global telecom, datacom markets

June 27, 2014
Infonetics Research says that mobile service revenue remains the main telecom/datacom growth engine worldwide, led by the unabated rise of mobile broadband.

Infonetics Research has released its latest Global Telecom and Datacom Market Trends and Drivers report, which analyzes global and regional market trends and conditions. According to the analyst, the International Monetary Fund (IMF) anticipates the world economy will expand 3.6% in 2014 (+0.06 from 2013), amid recoveries in the UK and Germany, and slowing growth in Japan, Russia, Brazil, and South Africa. The report states that mobile service revenue remains the main telecom/datacom growth engine worldwide, led by the unabated rise of mobile broadband.

“Expect a slowdown in the Americas, but for a change, Europe will be in the telecom capex driver’s seat this year,” adds Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research. “We’re forecasting global carrier capex to rise 4%, with EMEA as the growth engine despite unabated low-single-digit revenue declines all across Europe. After waiting for so many years to upgrade their networks, Europe’s ‘Big 5 -- Deutsche Telekom, Orange, Telecom Italia, Telefónica, and Vodafone -- have decided it’s time to take the plunge.” Also among the new report's top highlights: -- To avoid falling into the role of pipe provider, many service providers are deploying or weighing new architectural options such as caching/content delivery networks, distributed BRAS/BNG, next-gen central offices, distributed mini data centers, and video optimization. -- Software-defined networks (SDNs) and network functions virtualization (NFV) have the attention of nearly all service providers, who are on the long road to widespread deployments. -- Big Data is becoming more manageable: Operators are leveraging subscriber and network intelligence to support marketing and loyalty strategies, churn management, and automation/optimization of networks using SDN and NFV. -- Cloud service, mobility, BYOD, and virtualization are the top trends driving enterprise networking and communication technology spending, with North America leading the way.

Matthias Machowinski, co-author of the report and Infonetics’ directing analyst for enterprise networks, concludes, “Economic expansion in mature economies and falling unemployment in Europe is driving stronger growth in enterprise telecom and datacom expenditures this year. We expect the network infrastructure segment to be the main beneficiary of growing investments, followed by security. The communication segment will likely have another challenging year, as companies evaluate their deployment strategy going forward.”

Learn more about the report.

About the Author

Matt Vincent | Senior Editor

Matt Vincent is a B2B technology journalist, editor and content producer with over 15 years of experience, specializing in the full range of media content production and management, as well as SEO and social media engagement best practices, for both Cabling Installation & Maintenance magazine and its website CablingInstall.com. He currently provides trade show, company, executive and field technology trend coverage for the ICT structured cabling, telecommunications networking, data center, IP physical security, and professional AV vertical market segments. Email: [email protected]

Sponsored Recommendations

imVision® - Industry's Leading Automated Infrastructure Management (AIM) Solution

May 29, 2024
It's hard to manage what you can't see. Read more about how you can get visiability into your connected environment.

Adapt to higher fiber counts

May 29, 2024
Learn more on how new innovations help Data Centers adapt to higher fiber counts.

Going the Distance with Copper

May 29, 2024
CommScopes newest SYSTIMAX 2.0 copper solution is ready to run the distanceand then some.