TIA Predicts Overseas Market Size

TIA predicts the telecom market outside the US will reach over $2 trillion by 2008

July 14, 2005

2 Min Read

ARLINGTON, Va. -- The telecommunications market outside the United States isexpected to continue its double-digit growth from 2004 to reach over $2trillion by 2008, according to TIA's 2005 Telecommunications Market Reviewand Forecast, an annual publication produced by the TelecommunicationsIndustry Association (TIA). Overall spending on telecommunications in thefive regions covered in the report -- Canada, Western Europe, EasternEurope, Latin America and Asia/Pacific -- will grow at an estimated 10.6percent compound annual growth rate (CAGR). The principal drivers for thisgrowth are improving economic conditions throughout the world, a growth ininfrastructure equipment investment, demand for mobile devices and wirelessservices.

The number of wireless subscribers is growing faster than the number oflandlines in each region and is expected to reach 1.9 billion in 2008,outnumbering landline subscribers by 69.1 percent. As wireless penetrationgrows, the average penetration rate for all regions is expected to reach 44percent by 2008.

High-speed broadband access will be a principal driver of equipment revenuein the next four years, helped by increased government support and astronger economic environment. Broadband access revenue will triple between2004 and 2008, from $33 billion to $101 billion. As the broadband marketexpands, the need for infrastructure to support the traffic will revitalizethe network infrastructure equipment market. TIA expects equipment spendingto increase at a 8.1 percent CAGR, rising from $238 billion in 2004 to $325billion in 2008.

Major international findings included in the report:

  • As the migration to wireless, voice over Internet protocol (VoIP)and cable telephony continues, the landline market will increase from $391billion in 2004 to $422 billion in 2008, averaging only a 1.9 percent CAGR.

  • Europe is expected to be the largest region in support servicesspending, reaching $354 billion by 2008 as the demand for equipmentincreases demand for services to support that equipment.

  • International wireless revenue will expand at an 11.6 percent CAGRfrom 2005-08, reaching $466 billion in 2008.

Telecommunications Industry Association (TIA)

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