Market intelligence report: communications services

This document provides market intelligence into the sector defined as communications services by the Intermediary Technology Institute (ITI) in Techmedia. For the purposes of this document, the definition of communications services is: the provision, management and delivery of voice, audio/video, data and IT services over wired and wireless communications networks, including consumer and business services, vertical sector industrial applications and broadcast content. The report describes the future market opportunities, challenges, key drivers and the potential functional needs of the Communications Services sector.

Information was obtained following the principles of market intelligence gathering (also known as foresighting) established by ITI Techmedia. Both primary and secondary market data were acquired and collated through market intelligence workshops, attended by experienced individuals from industry and academia; face-to-face interviews with key stakeholders from the sector; and desk research, which was used to obtain secondary data from internationally recognised market analysts.

A number of growth areas were identified through the market analysis, and are considered to have a significant market impact in the medium to long term. By 2008, the combined value of the sector is expected to grow to some USD1.6 trillion. In telecommunications services, revenue growth will be driven by the combination of growth in subscriber numbers in emerging markets and growth in average revenue per user (ARPU) in developed markets. As a result, mobile revenue is forecast to show steady growth, reaching some USD675 billion, representing revenue growth of over 50% from 2003. In the broadcast services space Digital Audio Broadcast (DAB) services and Digital Video Broadcast (DVB) services are expected to fuel revenue growth. As a result, global revenue from TV services is forecast to reach approximately USD240 billion by 2008. In terms of drivers, the report identified a series of key trends and drivers likely to impact the sector, including: increasing broadband accessibility; new and improved technology; regulation and political issues; an ageing population; and an increasing need for identification/authentication. As a number of large companies exert significant influence over the market however, structural barriers to market entry exist for new technology providers, including: adherence of incumbents to medium term product and service roadmaps; a risk-averse culture; long technology evaluation cycles; lack of demonstrable end-customer demand for new services; and the importance of international standards. Despite these issues, opportunities remain for companies to develop key elements of technology which become critical to the industry, allowing rapid company growth and profitable returns for the original investors. A variety of functional needs that support the development of each market segment are identified, highlighting the most likely technology winners.

There were no recommendations as this was not within the remit of the report.