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The 2012 Telecommunications Industry Review: An Anthology of Market Facts and Forecasts

a market research report

Report Excerpt
Market Segmentation
Table of Contents
Pricing Information
Press Release
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The 2012 Telecom Industry Review summarizes current conditions across the global telecommunications industry, providing analysis of over a dozen infrastructure and service segments. From fundamental background issues to detailed five-year forecasts accompanied by practical strategic advice, this study provides a sweeping examination of the telecom marketplace.

The Review provides up-to-date information in such key areas as wireless high-speed access, optical networking, VoIP, cable telephony, residential and business communications trends, and new opportunities such as various IP-based applications delivered as services as well as device-independent IPTV.

Whether you are an industry veteran or new to telecom, the 2012 Telecom Industry Review will serve as a frequently referenced yearbook, supplying hard data and sound analysis on pressing service and equipment issues. Concise, clear, and current, the review is a detailed strategic tool that amasses a year’s worth of telecom research—over a dozen segments—into one comprehensive resource.


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    Report Excerpt

    1.1 Telecommunications Industry Economic Conditions

    At the beginning of 2012, global financial markets remain unsteady, with European currency still under attack.  Although there are signs that the greatest economic downturn since the Great Depression of the 1930s will continue to drive investment decisions in the near term, the worst of the turmoil may soon be behind us.   The sharp drop in credit markets worldwide was directly tied to problems in the US mortgage industry, which ground to a halt during 2008.  Because US business and private investors got too complacent about risk, the amount of mortgages that were sold by banks to investment banks and then sold as US mortgage-related securities to investors grew from approximately $67 billion in 1996 to $773 billion in 2006.  This is one of the key reasons that set off the lending crisis and created serious concern about the health of the global economy.  Another precipitating factor in the credit squeeze was the legalization of credit default swaps in 2000 which allowed investors to “bet” that the mortgage market would fail. 

    In October of 2008, it was necessary for the Federal government to introduce a $700 billion bailout plan for the economy so that things would not worsen, and other governments followed suit with their own plans to spur lending.  The use of deficit spending and other “pump priming” measures probably had a salutary effect and averted a global Depression on the order to the 1930s, but the world economic system at the beginning of 2012 continues to exhibit considerable signs of stress. 

    Even amidst so much economic uncertainty, the fact remains that telecommunications is a key input factor in economic growth. Telecommunications is a facilitator of socio-economic advancement and is a critical utility for economic development, much like water and energy.  This fact is reflected in its growing share of world output and of household spending.  By Insight’s analysis, global telecommunications spending as share of global GDP has risen.........

     
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    Market Segmentation

     

    Telecommunications Industry Markets
                  By Geography
                                    North America
                                    Europe/Middle East/Africa
                                    Latin America/Caribbean
                                    Asia/Pacific
                  Global Carrier Revenue by Region,
                  2008 and 2013 Distribution of Global Carrier Revenue by Region
                  Service Provider Revenue By Provider Type
                  Worldwide Telecom Revenue Forecast by Services Category
                  Broadband Service Revenue Distribution by Service Type
                  North American Broadband Wireline Revenue
                  Impact of New Wireless Data Service Usage on ARPU
                  EMEA Broadband Wireline Revenue
                  Asia Pacific Broadband Wireline Revenue
                  LAC Broadband Wireline Revenue
                  Wireless Subscribers by Global Region 2002-2011
                  Distribution of Wireless Networks by Technology Type
                  Wireless Network Deployment Status, 2005 and 2006
                  Revenue for 2G, 2.5G, and 3G Market Segments by Region
                  Regional Subscriber Growth 2002-2005
                  Total Wireline and Wireless BBand Narrowband Revenues
                  Broadband Services Revenue Distribution

    Next Generation Network Infrastructure
                  US Broadband Switches Compared with Increase in Throughput
                  Wireline SS7 Queries 2003-2008
                  Impacts of VoIP on International Telecommunications Services
                  Total US Public Ethernet Revenues, 2005-2012
                  Worldwide Gateway Revenue Forecast
                  Total Worldwide Services Delivery Platform Revenues, 2006-2011
                  Worldwide Services Delivery Platform Revenues by Provider Type
                  Wavelength Services Revenue Totals
                  Total Worldwide Optical Equipment Market 2007-2012
                  Worldwide Fiber Deployment: New Additions 2007-2012

    Access Network
                  US Wireline End User Switched Access Lines 1999-2006
                  Landline Telephone Penetration Percentage US, 1999-2006
                  US Wireline Telephone Calls 1999-2005
                  US Wireless-Only Households, 2002-2006
                  US Access Line Substitution, Residential and Business, 2002-2006
                  BB Penetration by Technology in Top 20 Economies
                  Broadband Penetration as a Percentage of Households by Region
                  Worldwide Broadband Lines by Region, 2006-2011
                  Cell Phone Penetration as a Percentage of All Phone Subscribers,
                  Wireline vs. Mobile Phone Growth 1995-2004 )
                  Number of Cons BB Lines with Wireless Home Net By Region
                  Cellular and Wireline Phone Penetration Per Capita by Global Region
                  Cellular Subscribers By Global Region 2006-2012 
                  Total Worldwide FMC Carrier & Equipment Vendor Revenue
                  Number of Consumer Brdband Lines w/Wireless Home Ntwrking

    OSSes, BSSes & Outsourcing
                 Outsourced Services Market Estimate for Wireline and Wireless

    Present & Future Services
                  IP-Based Application Services
                                 Worldwide Residential Video Telephony Service Revenues
                                 Worldwide File Sharing/File Downloading Services Revenues
                                 Worldwide Wireline File Sharing/File Downloading Srvcs Rev.
                                 Worldwide Wireless File Sharing/File Downloading Srvcs Rev.
                                 Worldwide Audio/Video Streaming Services Revenues
                                 Worldwide Location-Based Services Service Revenues
                                 Worldwide Presence-Based Services Revenue
                  International VoIP Traffic By Region
                                 North American Inbound MOUs with VoIP
                                 North American Outbound MOUs with VoIP
                                 Caribbean Inbound MOUs with VoIP
                                 Caribbean Outbound MOUs with VoIP
                                 Central America Inbound MOUs with VoIP
                                 Central America Outbound MOUs with VoIP
                                 Latin America Inbound MOUs with VoIP
                                 Latin America Outbound MOUs with VoIP
                                 Europe Inbound MOUs with VoIP )
                                 Europe Outbound MOUs with VoIP
                                 Asia Inbound MOUs with VoIP
                                 Asia Outbound MOUs with VoIP 
                                 Africa Inbound MOUs with VoIP
                                 Africa Outbound MOUs with VoIP 
                                 Oceania Inbound MOUs with VoIP
                                 Oceania Outbound MOUs with VoIP

    Enterprise Markets
                 Classification of US Businesses
                                 US Business Distribution: All Business Sizes
                                 Business Establishments by Industry Sector & Business Size
                                 Business Lines: Distribution by Industry Sector
                 Total Private Line Revenue
                 Managed Wide Area Network Endpoints by Type
                 Internet Traffic and IT Staffing
                 US Managed Services Revenues
                 Total US Telecom Wireline Market, 2005 and 2010
                 Top-Tier Expenditures for Telecom Wireline Services
                 Total US Telecom Wireless Services, 2005 and 2010
                 Top-Tier Expenditures for Telecom Wireless Services
                 Total US Healthcare Telecom Service Revenues
                 Total US Mobile Enterprise Application Service Revenues, 2007-2012
                 Worldwide Grid Spending
     


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    Table of Contents

     

    Chapter I
    EXECUTIVE SUMMARY
    1.1   Telecommunications Industry Economic Conditions
    1.2   Report Structure

    Chapter II
    BACKGROUND: TELECOMMUNICATION INDUSTRY MARKETS
    2.1   Telecommunications Market Conditions
       2.1.1  Wireline Market Trends
       2.1.2  Broadband Market Trends
    2.2   Wireless Industry Markets
      2.2.1  Differences Between Wireless Mobile Technologies
      2.2.2  Wireless Market Trends
    2.3    Cable Industry Markets
       2.3.1  Cable Industry Evolution
       2.3.2  IP Cable Telephony
       2.3.3  US Cable Subscriber Growth

    Chapter III
    THE NEXT-GENERATION COMMUNICATIONS NETWORK:
    IMPROVEMENTS TO THE INFRASTRUCTURE
    3.1   Overview of Network Topology
       3.1.1  End-Users
       3.1.2  Access Networks
       3.1.3  Metro Networks
       3.1.4  Core Networks
    3.2    Transmission Improvements
    3.3    Overview of Switching Technologies
       3.3.1  Circuit Switching vs. Packet Switching
    3.4    The Public Switched Telephone Network
       3.4.1  Evolution of the PSTN
       3.4.2  Changes to the PSTN?
       3.4.3  Central Offices
    3.5    Data Networks and VoIP
       3.5.1  Broadband Switches
       3.5.2  Data Core Networks
       3.5.3  Data Metro Networks
       3.5.4  Data Access Networks
       3.5.5  Signaling and Support Structures for Data Networks
       3.5.6  Voice over Internet Protocol
       3.5.7  VoIP as Transport
       3.5.8  VoIP Operational Advantage
       3.5.9  VoIP as Value-Added Stage
    3.6    Carrier Ethernet Networks
       3.6.1  E-line
       3.6.2  E-LAN
       3.6.3  Other Typologies: Dedicated vs. Switched
       3.6.4  Carrier Ethernet Market Forecast
    3.7    The Next Generation Network
       3.7.1  Gateways
       3.7.2  Softswitches
       3.7.3  Service Delivery Platforms
       3.7.4  IP Multimedia Subsystems
    3.8    Optical Networking
       3.8.1  Baseline Optical Transport Technologies
       3.8.2  Optical Transport Technology Overview
       3.8.3  Current Gaps in Baseline Transport Technologies
       3.8.4  The Hybrid Approach to Optical Transport Technologies
       3.8.5  Optical Equipment Market Revenue Estimates
       3.8.6  Wavelength Service Market Trends
    3.9    Capital Investments in the Infrastructure
       3.9.1  WiMAX and LTE
       3.9.2  Broadband and NGNs
       3.9.3  Mobile Handsets and Smartphones
       3.9.4  Forecast of Telecommunications Operators’ Capital Spending
       3.9.3  Mobile Handsets and Smartphones
       3.9.4  Forecast of Telecommunications Operators’ Capital Spending

    Chapter IV
    THE ACCESS NETWORK: NARROWBAND AND BROADBAND
    4.1    Narrowband: The Decline of US Landlines
    4.2    Broadband Access Networks
       4.2.1  Broadband Access Forecasts
    4.3    Access Network Technology Options
       4.3.1  DSL
       4.3.2  Cable
       4.3.3  Bonded Copper
       4.3.4  Fiber
       4.3.5  Wireless
       4.3.6  Fixed Mobile Convergence
       4.3.7  WiFi
       4.3.8  WiMAX

    Chapter V
    SUPPORTING THE INFRASTRUCTURE: OSSES, BSSES, AND OUTSOURCING
    5.1    Operations Support Systems Overview
    5.2    Operations Support Applications
       5.2.1  Business Operations Support
       5.2.2  Network Operations Support
       5.2.3  Network Management
    5.3    OSS Market Revenue Estimates
    5.4    Outsourcing
       5.4.1  Vendor Activity Summary
       5.4.2  The Market for Outsourcing Services
    5.5    Spending in Global Telecom Equipment Markets
    5.6    The Impacts of Open Source Software on OSSes
       5.6.1  The Question of Intellectual Property
       5.6.2  Open Source Software Benefits
       5.6.3  Open Source Software Project Challenges
       5.6.4  Open Source Support: The Commercial License
       5.6.5  Open Source Markets and Revenue Estimates

    Chapter VI
    PRESENT AND FUTURE COMMUNICATIONS SERVICES MARKETS
    6.1    IP-Based Application Services
       6.1.1  Introduction & Definitions
       6.1.2  VoIP as a Non-Starter
       6.1.3  Key IP Service Trends
       6.1.4 I P Services Market Forecast
    6.2    The Future of IP Services: Web 2.0
       6.2.1  Web 2.0 and Mashups
       6.2.2  Web 2.0 & the Carriers
       6.2.3  Web 2.0 Market Forecast
    6.3    The Future of IP Services: Mashups
       6.3.1  What We Found
       6.3.2  What Role for Telcos in Mashups?
       6.3.3  Mashup Market Forecast 256
    6.4    Telecommunications Role in Improving the Environment
       6.4.1  Modeling the Benefits of Green
    6.5    Mobile Phones and Financial Applications
       6.5.1  Core Banking Solutions and Mobile Phones
       6.5.2  Financial Applications for Mobile Phones
       6.5.3  Revenue Potential of Financial Applications for Mobile Phones
    6.6    The Future of Telecommunications
       6.6.1  IP Changes Everything
       6.6.2  Convergence Cuts Both Ways
       6.6.3  The Road Ahead for Operators
       6.6.4  The Road Ahead for OEMs

    Chapter VII
    ENTERPRISE TELECOMMUNICATIONS MARKETS
    7.1    The Classification of Businesses by Size
       7.1.1  Distribution of Business by Size
       7.1.2  The Business Line Market Methodology and Analysis
       7.1.3  The Business Line Market in Small Enterprises
    7.2    Private Lines
       7.2.1  Evolution in the Private Line Services Market
       7.2.2  Circuit Types
       7.2.3  SONET, IP and Private Lines
       7.2.4  Private Line Circuit Layout
       7.2.5  Redundancy & Restoration
       7.2.6  Private Line Alternatives
       7.2.7  Private Line Services Market Forecast
    7.3    Managed Services & the Enterprise
       7.3.1  Why Managed Services?
       7.3.2  Industry Structure
       7.3.3  Managed Service Industry Forecast
    7.4    Vertical Industry Spending on Telecommunications Services
       7.4.1  Telecommunications and Vertical Marketing
       7.4.2  Healthcare as a Fast Growing Vertical Industry
    7.5    The Mobile Workforce and Enterprise Applications
       7.5.1  The Key Enterprise Mobility Applications
       7.5.2  Mobile Enterprise Market Forecasts
    7.6    Enterprise Unified Communications
       7.6.1  Defining Unified Communications
       7.6.2  The Benefits of Unified Communications
       7.6.3  Unified Communications: Dedicated versus Hosted
       7.6.4 The Stakeholders
       7.6.5  Unified Communications Markets and Revenue
    7.7    The CATV MSOs’ Push into the Enterprise
       7.7.1  CableCos Well Positioned to Compete in Enterprise Markets
       7.7.2  Deploying Commercial Services
       7.7.3  Market Forecast
    7.8     Hosted Voice Services in the Small Enterprise
       7.8.1  Market Forecast for Hosted PBX/VoIP Services

    Table of Figures

    Chapter I
    I-1     Global Carrier Revenue by Region, 2012-2017

    Chapter II
    II-1     Global Carrier Revenue by Region, 2012-2017
    II-2     North American Broadband Wireline Revenue by Market Segment
    II-3     EMEA Broadband Wireline Revenue, 2012-2017
    II-4     Asia Pacific Broadband Wireline Revenue, 2012-2017
    II-5     LAC Broadband Wireline Revenue, 2012-2017
    II-6     Impact of New Wireless Data Service Usage on Ave. Rev. per User
    II-7     Circuit Switched with Hybrid IP Network Architecture
    II-8     Cable IP Telephony
    II-9     Basic DOCSIS
    II-10   Basic PacketCable Architecture

    Chapter III
    III-1   Public Communication Network Architecture
    III-2   SONET Ring Configuration
    III-3   Hierarchy of Broadband Switch Functions
    III-4   Typical National Data Core Network
    III-5   E-Line Point-to-Point Service Type
    III-6   E-LAN Multipoint-to-Multipoint Service Type
    III-7   Worldwide Gateway Revenue Forecast, 2008-2013
    III-8   Softswitch Architecture Diagram
    III-9   Circuit vs. Packet Switching of Internet Traffic
    III-10 SDP Service Provider Network Architecture
    III-11 STS-1 Frame Structure
    III-12 STM-1 Frame Structure
    III-13 Four-Channel DWDM System
    III-14 Schematic of an MPLS Network
    III-15 Label Header Structure
    III-16 MPLS over WDM Core
    III-17 Worldwide Optical Equipment Sales
    III-18 Worldwide Fiber Sales, 2008-2013
    III-19 Managed Wavelength Service Evolution Path

    Chapter IV
    IV-1   Landline Telephone Penetration Percentage US
    IV-2   Historical Landline vs. Wireless Penetrations
    IV-3   Total US Wireless Subscribership Growth, 1997-2010
    IV-4   US VoIP Households, 2007-2012
    IV-5   HFC Architecture Providing Video and Voice Services
    IV-6   Typical Backhaul Configuration
    IV-7   Typical DSLAM Backhaul Application
    IV-8   High Speed Data over Copper Service Provider Revenue
    IV-9   Revenue Distribution Wirelines vs. Wireless
    IV-10 Total US Wireless Subscribership Growth, 1997-2010
    IV-11 US Wireless Average Minutes Per Local Call
    IV-12 Revenue Split between Non-Voice and Voice Wireless Revenue
    IV-12 Phone Usage Habits, Women versus Men, January 2011
    IV-13 Monthly Voice and Text Usage by Age, January 2011
    IV-14 Cell Phone Penetration as a % of All Phone Subscribers, by Region
    IV-16 Wireline vs. Mobile Phone Growth 1988-2006
    IV-17 Common Fixed Mobile Convergence Scenarios
    IV-18 Total Worldwide FMC Carrier & Equipment Vendor Revenue 196

    Chapter V
    V-1    Operations Support Systems Dataflow
    V-2    Business Operations Systems Dataflow
    V-3    Total Worldwide OSS Sales Revenue
    V-4    Worldwide Telecom Open Source Market Revenue

    Chapter VI
    VI-1   Worldwide IP Services Market by Service Type
    VI-2   Web 2.0 Business Models
    VI-3   Global Opportunities for Web 2.0 Applied to Telecom
    VI-4   Logical Schematic of a Commercial Mashup
    VI-5   Global Mashup Revenue Opportunity for Telcos
    VI-6   Worldwide Green Communications Technologies Revenues
    VI-7   Global Total Revenue Opportunity for Mobile Financial Applications
    VI-8   Telecom Networking Before and After IP
    VI-9   Operator CAPEX in Select Markets, 2008-2015

    Chapter VII
    VII-1  Capacities of 64 Kbit/s, T1, and T3 Circuits
    VII-2  Typical Layout for a Full Circuit
    VII-3  ISDN Switched Backup
    VII-4  SONET Rings
    VII-5  Fiber-to-Fiber Redundancy
    VII-6  Cable-to-Cable Physical Redundancy (Diverse Cable Redundancy)
    VII-7  Total Private Line Revenue, 2011-2016
    VII-8  Managed Services Gross Margins
    VII-9  Global Managed Services Market by Region, 2011-2016
    VII-10 Drivers of Telecom Expenditures in Vertical Markets
    VII-11 Total US Telecom Wireline Market, 2010 and 2015
    VII-12 Top-Tier Business Expenditures for Telecom Wireline Services, 2010 and 2015
    VII-13 Total US Telecom Wireless Services, 2010 and 2015
    VII-14 Top-Tier Business Expenditures for Telecom Wireless Services
    VII-15 Total US Healthcare Telecom Service Revenues, 2009-2014
    VII-16 Global Market for Enterprise Mobility Solutions, 2011-2016
    VII-17 Breakdown of UC Market According to Implementation Methodologies
    VII-18 Total Global Market for All UC Segments
    VII-19 US MSO Commercial Service Revenues by Business Size
    VII-20 Forecasted Growth of Hosted PBX/VoIP Rev.in the Small Bus.Seg.

    Table of Tables

    Chapter I
    I-1    Worldwide Telecom Revenue Forecast by Services Cat.

    Chapter II
    II-1   Global Carrier Revenue by Region, 2012-2017
    II-2   2012 and 2017 Distribution of Global Carrier Revenue by Region
    II-3   Worldwide Service Provider Revenue by Service Type
    II-4   Global Wireless Revenue by Region, 2012-2017
    II-5   Global Wireline Revenue by Region, 2012-2017
    II-6   Regional Access Lines, 2012-2017
    II-7   Worldwide Telecom Revenue Forecast by Services Cat.
    II-8   Broadband Consumer Applications and Required Bandwidth
    II-9   Regional Wireless Subscribers, 2011-2016
    II-10 Regional Wireless Penetration by Population
    II-11 Wireless Data Technologies Comparison
    II-12 Revenue for 2G, 2.5G, and 3G Market Segments by Region
    II-13 DOCSIS Evolution: Service Comparison
    II-14 DOCSIS Evolution: Customer Equipment Supported
    II-15 DOCSIS Evolution: Upload/Download Speeds Supported

    Chapter III
    III-1  Definitions of Digital Private Line Services
    III-2  SONET Data Rates
    III-3  Distinctions between POTS and Data Networks
    III-4  Network Locations of Broadband Switches
    III-5  Downstream DSL Bit-rates vs. Reach
    III-6  Total Number of SS7 Queries for U.S. Access Line Calls
    III-7  Percent of Broadband Consumers Adopting VoIP, 2008-2013
    III-8  US VoIP Subscribers, 2004-2008
    III-9  US VoIP Segment Size and SIP Invite Transaction Growth, 2009-2014 74
    III-10 Characteristics of Ethernet Service Varieties
    III-11 Total US Public Ethernet Revenues, 2009-2016
    III-12 Gateway Definitions
    III-13 Softswitch Advantages/Disadvantages
    III-14 Economic Benefits of Softswitch Technology
    III-15 Strategies to Increase Network Service Margins
    III-16 Interrelationship between STM, STS, OC, and Gbit/s
    III-17 ITU’s Laser Grid
    III-18 Worldwide Fiber Sales, 2008-2013
    III-19 Wavelength Market Segments
    III-20 Wavelength Services Revenue Totals, 2008-2013
    III-21 Operator CAPEX in Select Markets, 2008-2015

    Chapter IV
    IV-1   US Wireline End User Switched Access Lines
    IV-2   US Wireline Telephone Calls, 1999-2005
    IV-3   Broadband Communication Network Access Solutions
    IV-4   Worldwide Broadband Lines, 2011-2017
    IV-5   The Versions and Features of xDSL
    IV-6   Worldwide Wireline vs. Wireless Revenue Growth
    IV-7   Wireline Subscribers, 2012-2017
    IV-8   Regional Wireless Subscribers, 20128-2017
    IV-9   Consumer VoWLAN/Cellular Service Scenario:
    IV-10 Number of Consumer Broadband Lines with Wireless Home Networking,

    Chapter V
    V-1   OSS Definitions Summary
    V-2   Characteristics of Broadband Network Management
    V-3   Distinct Characteristics of Packet Broadband Network Management
    V-4   Total Worldwide OSS Sales Revenue by Region, 2011-2016
    V-5   Vendor Activity Summary
    V-6   Outsourced Services Market Estimate for Wireline and Wireless
    V-7   Global Telecommunications Equipment Market by Type
    V-8   Open Source Component Categories

    Chapter VI
    VI-1 Green Comm. Portfolio of Product Domains, Services and Apps

    Chapter VII
    VII-1   US Business Distribution: All Business Sizes
    VII-2   Business Establishments by Industry Sector and Business Size
    VII-3   Business Lines: Distribution by Industry Sector
    VII-4   Business Lines by Industry Sector and Business Size
    VII-5   Digital Services Hierarchy
    VII-6   SONET/Optical Carrier Hierarchy
    VII-7   Managed Services Segments
    VII-8   Managed Service Solutions by Business Size
    VII-9   Healthcare Market Segments
    VII-10 Healthcare Segment Dimensions and Trends
    VII-11 US Companies Ranked by Video Subscribers
    VII-12 US MSO Commercial Service Revenues by Business Size
    VII-13 Business Lines by Industry Sector and Business Size
    VII-14 ILECs & MSOs Operating Territories Covered


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