According to The Insight Research Corporation, the global telecommunications industry was not immune to economic forces in 2012 that slowed growth from earlier expectations.

Spending for wireline services contracted in 2012, while spending on wireless services grew modestly.  According to the study, telecommunications services revenue worldwide will grow from $2.2 trillion in 2012 to $2.7 trillion in 2018 at a combined average growth rate of 3.8 per cent.

Also, the firm says that wireless subscriber growth compounded with rising usage will raise wireless revenues by 31 per cent from current levels, yet wireline revenues will remain flat until substantial economic recovery kicks in.

Despite these modest gains, there are some sectors, such as Ethernet, cloud, and mobile solutions that will show double-digit annual percentage growth. In North America, wireless revenues will grow by 35 per cent and wireline broadband revenues will grow by 19 per cent over current levels.

Commenting on the findings Fran Caulfield, Research Director for Insight Research, said, “Telecommunications revenues are driven by several factors-economic conditions, household expansion, population, and disposable income-to name a few.  Until these indicators strengthen we will continue to see modest improvements in growth areas, such as wireless data and IPTV, along with declines in mature services, such as voice and wireline data. Global telecommunications spending will hover around 3 per cent of GDP; slightly lower in the US.  Despite the weakness in these indicators, the fact remains that telecommunications is a key enabler of economic growth and service providers with the right strategy will prosper.”