Ovum: Mobile broadband revenues to grow 19 percent

Carrier Wi-Fi gear shipments should experience high growth through 2017
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Mobile broadband revenue is expected to grow 19 percent, generating $122.9 billion in incremental revenue for mobile operators between 2013 and 2016, according to the latest research from Ovum.

Enterprise Ethernet, public cloud, IPTV, and managed/hosted IP voice are also predicted to display double-digit revenue growth for telecom operators over the next four years.

"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 three to four 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," John Lively, chief forecaster at Ovum, said.

In the consumer segment, operators will be competing with new over-the-top players, as well as traditional competitors. To meet this challenge, Lively recommends adopting consumer-services marketing approaches.

For telecom equipment vendors, Ovum recommends that they position themselves in high-growth gear segments such as carrier Wi-Fi, converged packet optical, reconfigurable optical add-drop multiplexer, and 40G/100G networking gear, as well as network-related services.

Last year, Ovum predicted that carrier Wi-Fi gear shipments would increase by 84 percent in 2012 and continue double-digit growth through 2017.

Lively warned equipment vendors to expect high volatility in market demand. "This can be mitigated to some degree by forming close relationships with infrastructure vendors and jointly understanding the end customers' needs and plans. Plus, winning a share of 40G and 100G business will be essential to avoid being left behind by competitors," he noted.

For more:
- check out Ovum's release

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