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The 2014 Telecommunications Industry Review:  An Anthology of Market Facts and Forecasts


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The 2014 Telecom Industry Review summarizes current conditions across the global telecommunications industry, providing analysis of multiple infrastructure and service segments. From fundamental background issues to detailed five-year forecasts accompanied by practical strategic advice, the Review provides a comprehensive summary of INSIGHT’s research reports throughout the year. In addition to five-year revenue and unit forecasts of telecommunications services, the Review provides an examination of the most important segments and technologies impacting the industry, including wireless demand, optical networking, Ethernet services, and cloud services. This report looks at the global telecommunications services and equipment market in each region: North America; Europe-Middle East-Africa; Asia and the Pacific Rim countries; and Latin America. Modest growth has returned to most telecom markets across the globe and the Review identifies the segments that will thrive over the second-half of the decade.

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    Report Excerpt

    1.1       Telecommunications Industry Economic Conditions

    The past year has exhibited modest growth in most markets, significant economic slowdown in the hyper-growth rates enjoyed over the past decade in advancing economies, and renewed political and economic threats in some isolated countries.  The US, Japan, and most other western economies have started to accelerate from lower growth levels of the past two years, while China and other emerging market economies in Asia and Latin America have slowed from the double-digit growth rates of the past decade.  While consumer and infrastructure spending is rising in most regions, other regions, such as Middle East, North Africa, Afghanistan, and Pakistan, and  sub-Saharan Africa, remain in a weak investment climate.  In the US, for the first half of 2013, GDP grew at an annual rate of 1.25 percent, while inflation averaged 1.8 percent.  The US is facing ................

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    Market Segmentation


    Telecommunications Industry Markets
                  By Geography
                                    United States
                                    North America
                                    Europe/Middle East/Africa
                                    Latin America/Caribbean
                  Carrier Revenue by Service
                                   Global Wireline and Wireless Revenues
                                   NA Wireline and Wireless Revenues
                                   US Wireline and Wireless Revenues
                                   EMEA Wireline and Wireless Revenues
                                   AP Wireline and Wireless Revenues
                                   LA Wireline and Wireless Revenues
                  Wireline Revenues and Demand by Service
                                  Access Revenue by Region
                                  US Access Revenue
                                  Broadband Revenue by Region
                                  US Broadband Revenue
                                  Access Lines by Region
                                  US Access Lines
                                  Broadband Subs by Region
                                  US Broadband Subs
                  Wireless Revenues and Demand by Region and US
                                 Wireless Revenue by Region and US
                                  Subscribers by Region and US
                                  Penetration of Population by Region and US
                  Wireless Data Technologies Comparison

    Next Generation Network Infrastructure
                  US VoIP Subscribers and Penetration
                  Operator Capex in Selected Geographies
                  Impacts of VoIP on International Telecommunications Services
                  Total US Public Ethernet Revenues

    Access Networks
                  US Wireline Switched Access Lines
                  US Wireless Subscribers
                  US Voice Services Penetration of Households
                  Broadband Communication Network Access Solutions
                  Worldwide Broadband Subscribers
                  Global Wireless Subscribers
                  Regional Wireless Penetration of Population
                  Historical US Wireless Subscribership Growth
                  Revenue Split between Non-Voice and Voice Wireless Revenue
                  Monthly Voice and Text Usage by Age

    OSS, BSS & Outsourcing
                  Outsourced Services Market Estimates by Region

    Present & Future Services
                  Mashup Revenue Opportunity for Telcos by Region
                  Financial Services & Equipment Revenue by Region
                  Operator Capex in Selected Geographies

    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
                  US Private Line Revenue
                  Managed Services Revenues by Region
                  Top-Tier Business Expenditures for Telecom Wireline Services
                  Top-Tier Business Expenditures for Telecom Wireless Services
                  US Healthcare Telecom Service Revenues
                  Global Market for Enterprise Mobility Solutions
                  Global Market for All UC Segments: Solutions, Services and Carrier Revenues
                  US Telecommunications Revenue by Market: Wireline Business, Wireline  
                         Residence, Wireless, Video
                  US MSO Commercial Service Revenues
                  Revenue Projection for Hosted PBX/VoIP Service in the Small Business Segment

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    Table of Contents


    Chapter I
    1.1   Telecommunications Industry Economic Conditions
            1.1.1  Regional Economies and Communications Patterns
    1.2   Report Structure

    Chapter II
    2.1   Global Markets 9
            2.1.1  Regional Economies and Communications Patterns
            2.1.2  Global Telecommunications Spending
            2.1.3  North American Telecommunications Spending
            2.1.4  European, Middle East, and Africa Telecommunications Spending
            2.1.5  Asia-Pacific Telecommunications Spending
            2.1.6  Latin America-Caribbean Telecommunications Spending
    2.2   Wireline Market Trends
            2.2.1  Wireline Revenues
            2.2.2  Wireline Demand
    2.3   Wireless Market Trends
            2.3.1  Wireless Revenues
            2.3.2  Wireless Demand
            2.3.3  Wireless Technology

    Chapter III
    3.1   Definitions 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  Circuit Switching vs. Packet Switching Overview
    3.4  The Public Switched Telephone Network
           3.4.1  Evolution of the PSTN
           3.4.2  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
    3.9  Capital Expenditures Forecast

    Chapter IV
    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
    5.1   Operations Support Systems Overview
    5.2   Operations Support Applications
    5.3   Business Operations Support
            5.3.1 Billing
            5.3.2 Customer Care
            5.3.3 Business Management
    5.4   Network Operations Support
            5.4.1  Engineering and Planning
            5.4.2  Provisioning
            5.4.3  Trouble Repair
            5.4.4  Network Management
            5.4.5  Workforce Management
    5.5   OSS Market Revenue Estimates
            5.5.1  Impacts of Equipment Markets on OSSes
    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

    Chapter VI
    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
    6.2   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 206
            6.3.2 What Role for Telcos in Mashups?
            6.3.3 Mashup Market Forecast 208
    6.4   Mobile Phones’ Impacts on the Financial Sector
            6.4.1 Core Banking
            6.4.2 User Financial Applications for Mobile Phones
            6.4.3 Financial Services Segment Forecast
    6.5   Telecommunications Role in Improving the Environment
            6.5.1 Modeling the Benefits of Green
    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
    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   Healthcare as a Fast Growing Vertical Industry
            7.4.1 Healthcare Industry Structure Ready for Change
            7.4.2 Market Estimate of Healthcare Telecom Spending
    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   The CATV MSOs’ Push into the Enterprise
            7.6.1 CATV Industry
            7.6.2 MSO Commercial Services: Big Opportunity, Major Challenges
            7.6.3 Deploying Commercial Services
            7.6.4 Market Forecast Summary
    7.7   Hosted Voice Services in the Small Enterprise
            7.7.1 The Small Business Market for Hosted PBX/VoIP Services
    7.8   Advanced Strategic Services: The Growth Engine for Wireline Business Services
            7.8.1 Advanced Strategic Services
            7.8.2 Importance of Strategic Services
            7.8.3 Market Forecast Summary

    Table of Figures

    Chapter I
    I-1   Global Carrier Revenue by Region, 2014-2019 ($Billions)
    I-2   Global Wireline and Wireless Revenues, 2014-2019 ($Billions)
    I-3   US Wireline and Wireless Revenues, 2014-2019 ($Billions)

    Chapter II
    II-1  US LTE Coverage, 2010-2014

    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    Softswitch Architecture Diagram
    III-8    Circuit vs. Packet Switching of Internet Traffic
    III-9    SDP Service Provider Network Architecture
    III-10  STS-1 Frame Structure
    III-11  STM-1 Frame Structure
    III-12  Four-Channel DWDM System
    III-13  Schematic of an MPLS Network
    III-14  Label Header Structure
    III-15  MPLS over WDM Core

    Chapter IV
    IV-1   US Voice Services Penetration of Households
    IV-2   Worldwide Broadband Subscribers
    IV-3   HFC Architecture Providing Video and Voice Services
    IV-4   Typical Backhaul Configuration
    IV-5   Typical DSLAM Backhaul Application
    IV-6   Global Wireless Subscribers, 2014-2019
    IV-7   US Wireless Subscribers, 1997-2017
    IV-8   US Wireless Average Minutes Per Local Call
    IV-9   Revenue Split between Non-Voice and Voice Wireless Revenue
    IV-10 Phone Usage Habits, Women versus Men, January 2011
    IV-11 Monthly Voice and Text Usage by Age, January 2011
    IV-12 Common Fixed Mobile Convergence Scenarios

    Chapter V
    V-1   Operations Support Systems Dataflow
    V-2   Business Operations Systems Dataflow
    V-3   Telecommunications Management Network Functional Architecture
    V-4   Total Worldwide OSS Sales Revenue, 2011-2016
    V-5   Operator Capex in Selected Geographies, 2009-2017

    Chapter VI
    VI-1  Web 2.0 Business Models 198
    VI-2  Global Opportunities for Web 2.0 Applied to Telecom, 2011-2016
    VI-3  Logical Schematic of a Commercial Mashup 205
    VI-4  Global Mashup Revenue Opportunity for Telcos, 2010-2015
    VI-5  Taxonomy of Revenue Opportunities in the Financial Domains
    VI-6  Global Financial Services & Equipment Revenue, 2012-2017
    VI-7  Telecom Networking Before and After IP 226
    VI-8  Operator Capex in Selected Geographies, 2009-2017

    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, 2013-2017
    VII-8    Global Managed Services Market by Region, 2012-2017
    VII-9    Total US Healthcare Telecom Service Revenues, 2012-2017
    VII-10  Global Market for Enterprise Mobility Solutions, 2011-2016
    VII-11  US Telecommunications Revenue by Market, 2012
    VII-12  US MSO Commercial Service Revenues, 2013-2018
    VII-13  Revenue Projection for Hosted PBX/VoIP Service in the Small Business Seg.
    VII-14  Advanced Strategic Services Framework
    VII-15  Telecommunications Value Chain
    VII-16  US Advanced Strategic Services Revenues Summary

    Table of Tables

    Chapter II
    II-1    Global Carrier Revenue by Region, 2014-2019
    II-2    US Carrier Revenue, 2014-2019
    II-3    Global Wireline and Wireless Revenues, 2014-2019
    II-4    NA Wireline and Wireless Revenues, 2014-2019
    II-5    US Wireline and Wireless Revenues, 2014-2019
    II-6    EMEA Wireline and Wireless Revenues, 2014-2019
    II-7    AP Wireline and Wireless Revenues, 2014-2019
    II-8    LA Wireline and Wireless Revenues, 2014-2019
    II-9    Global Wireline Revenue by Region, 2014-2019
    II-10  Access Revenue by Region, 2014-2019
    II-11  US Access Revenue, 2014-2019
    II-12  Broadband Revenue by Region, 2014-2019
    II-13  US Broadband Revenue, 2014-2019
    II-14  Access Lines by Region, 2014-2019
    II-15  US Access Lines, 2014-2019
    II-16  Broadband Subs by Region, 2014-2019
    II-17  US Broadband Subs, 2014-2019
    II-18  Global Wireless Revenue by Region, 2014-2019
    II-19  Wireless Subs by Region, 2014-2019
    II-20  NA Wireless Subscriber Penetration, 2014-2019
    II-21  US Wireless Subscriber Penetration, 2014-2019
    II-22  EMEA Wireless Subscriber Penetration, 2014-2019
    II-23  AP Wireless Subscriber Penetration, 2014-2019
    II-24  LA Wireless Subscriber Penetration, 2014-2019
    II-25  Wireless Data Technologies Comparison
    II-26  US Wireless Carriers 4G LTE Coverage as of October 2013

    Chapter III
    III-1    Definitions of Digital Private Line Services
    III-2    SONET Data Rates
    III-3    Network Locations of Broadband Switches
    III-4    Downstream DSL Bit-rates vs. Reach (Mbit/s)
    III-5    US VoIP Subscribers and Penetration, 2014-2019
    III-6    Characteristics of Ethernet Service Varieties
    III-7    Total US Public Ethernet Revenues, 2011-2018
    III-8    Gateway Definitions
    III-9    Softswitch Advantages/Disadvantages
    III-10  Economic Benefits of Softswitch Technology
    III-11  Strategies to Increase Network Service Margins
    III-12  Interrelationship between STM, STS, OC, and Gbit/s
    III-13  ITU’s Laser Grid
    III-14  Operator Capex in Selected Geographies 2013-2017

    Chapter IV
    IV-1  US Wireline Switched Access Lines, Penetration
    IV-2  US Wireless Subscribers, 2014-2019
    IV-3  Broadband Communication Network Access Solutions
    IV-4  The Versions and Features of xDSL
    IV-5  Consumer VoWLAN/Cellular Service Scenario: Advantages & Disadvantages

    Chapter V
    V-1  Operations Support System Definitions Summary
    V-2  Related OSS Definitions
    V-3  Worldwide OSS Sales by Region, 2011-2016
    V-4  Operator Capex in Selected Geographies, 2013-2017

    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    Healthcare Market Segments
    VII-9    Healthcare Segment Dimensions and Trends
    VII-10  Business Lines by Industry Sector and Business Size
    VII-11  ILECs & MSOs Operating Territories Covered

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