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Gartner Dataquest says global telecom revenue to reach $1.4T in 2001

Posted: 02 Jan 2002 ?? ?Print Version ?Bookmark and Share

Keywords:gartner dataquest? telecommunication? mobile handset?

The global telecommunications market revenue is expected to reach $1.4 trillion in 2001, an 8 percent increase from 2000 revenue, according to Dataquest Inc., a unit of Gartner Inc., in a recent report entitled "Telecom Markets and the Recession: An Imperfect Storm." The industry will continue to grow in 2002 with global telecommunications revenue projected to reach $1.5 trillion.

The global telecom equipment and infrastructure revenue is expected to reach $364.7 billion in 2001, down 4 percent from 2000 revenue of $381 billion. Gartner Dataquest analysts said there is reason for optimism, as the telecom services segment is emerging as the sector least susceptible to economic uncertainty. The global telecom services market is forecast to have revenue surpass $1 trillion in 2001, a 13 percent increase from 2000.

A key element in the year-on-year downturn in the equipment sector actually stems from very aggressive infrastructure build-out by the operators during 2000 which has trailed away in the wake of the implosion. While it will take a little time to take up this slack, the underlying demand remains strong, and this is a big factor in Gartner Dataquest's expectations of a return to growth over the next few years. The patterns vary significantly by region, with North America and Western Europe hardest hit during 2001, while the Asia Pacific markets continue to expand, according to Gartner Dataquest.

Meanwhile, the market for mobile handsets, long seen as the bulwark of an era-blistering growth in the mobile industry, is seeing its first slowdown. Mobile vendors and service providers will find it hard to adjust to a period that sees growth cooling from "white-hot to just hot," the report said.

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