Omdia’s latest report points out that the global recession will bring challenges to the telecommunications market, but the continued demand for telecom services will help cushion the impact on the industry. Global mobile service revenue growth is expected to fall to 2.54 percent in 2023, down from 3.78 percent in 2021.
Omdia said the next wave of 5G services will come from low-income markets. Many of the upcoming 5G networks will come from low-income markets in Africa, Central & South Asia, and Latin America. India is expected to be the third-largest 5G market in the world (by subscribers) by the end of 2023.
The report says the telecom market will see a further wave of consolidation. Further consolidation among operators is likely to occur. Given that revenues are growing moderately while network spending remains high, many industry insiders believe that operators will have to embark on mergers and acquisitions if they are to succeed.
At the same time, operators will tighten their business focus. Many operators will sharpen their business focus, which may lead them to divest non-core assets and businesses. Some operators may consider selling recently established, newer digital services businesses or bringing in strategic investors to further develop these businesses.
