• November 27, 2020

Telcos in Asia/Pacific Are Performing Better than Expected: IDC Has Adjusted Its Forecast for Worldwide Connectivity Services Market Upwards - Odessa American: Business

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Telcos in Asia/Pacific Are Performing Better than Expected: IDC Has Adjusted Its Forecast for Worldwide Connectivity Services Market Upwards

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Posted: Friday, November 6, 2020 4:01 pm

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Nov 6, 2020--

Worldwide spending on telecommunication and pay TV services will reach $1,565 billion in 2020, representing a decline of 1.1% year on year, according to the International Data Corporation ( IDC ) Worldwide Semiannual Telecom Services Tracker. Although this market will return to growth next year, it is not expected to achieve the pre-COVID-19 spending levels before 2022.

The latest forecast for telecom services spending is a bit more optimistic than the one published in September. The major reason for this is the better-than-expected results reported by telecom operators in the Asia/Pacific region, especially in China. This is the logical consequence of the Chinese economy's fast recovery, which brought a new wave of optimism and boosted demand for telecommunication services. India, the third largest market in the Asia/Pacific region, also witnessed unexpectedly positive movement. Although the forecast for that market remains negative, it has improved by several percentage points and thus enhanced the results for the entire region.

IDC has not made significant changes to its forecast for the Americas and EMEA markets. The scenario revealed in September that presumed a slight decline in spending on telecom services due to the economic downturn caused by the pandemic seems to be coming true. The introduction of new lockdowns in the biggest European countries, in our view, should not have an immediate impact on the telco market, because telco services have been secured by longer-term contracts. Moreover, a bigger decline in demand is not very probable because many European governments have imposed additional measures aimed at protecting businesses and the general population from the economic impact of the pandemic.

Regional Telecommunications Services Revenue and Year-on-Year Growth (revenues in US$ billions)

Global Region

2019
Revenue

2020
Revenue*

2020/2019
Growth*

Americas

$624

$620

-0.7%

Asia/Pacific

$480

$477

-0.6%

EMEA

$477

$467

-2.0%

Grand Total

$1,582

$1,565

-1.1%

Source: IDC Worldwide Semiannual Services Tracker, 1H 2020.

* Note: Forecast values.

In addition to the table above, a graphic illustrating IDC's 2019-2024 worldwide telecom services forecast by region is available by viewing this press release on IDC.com.

The 1H20 update of the Worldwide Semiannual Telecom Services Tracker has verified that the telecommunications industry remains one of the most resilient sectors of the global economy during the COVID-19 crisis. "The telecom services segment is weathering the COVID-19 storm better than other ICT segments," said Carrie MacGillivray, group vice president and general manager, Worldwide Telecom, Mobility, and IoT research at IDC. "Connectivity has been the linchpin in keeping individuals connected and businesses operational during this unprecedented time. COVID-19 will be a case study we will reference for years to come as the start of the Future of Connectedness."

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

For more information about IDC's Worldwide Semiannual Telecom Services Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group ( IDG ), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog—Subscribe.

View source version on businesswire.com:https://www.businesswire.com/news/home/20201106005574/en/

CONTACT: Kresimir Alic

kalic@idc.com

+385-1-304-0052Michael Shirer

press@idc.com

508-935-4200

KEYWORD: MASSACHUSETTS UNITED STATES NORTH AMERICA ASIA PACIFIC

INDUSTRY KEYWORD: TECHNOLOGY TV AND RADIO ENTERTAINMENT TELECOMMUNICATIONS

SOURCE: International Data Corporation

Copyright Business Wire 2020.

PUB: 11/06/2020 05:01 PM/DISC: 11/06/2020 05:01 PM

http://www.businesswire.com/news/home/20201106005574/en

© 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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