How
will the current economic/political turmoil impact
telecom consulting?
Isabelle Paradis
November 2011
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According
to the information released by HOT TELECOM (www.hottelecom.com)
in the 6th edition of its “Global Telecom
Consulting Market report 2011”, the economic
downturn caught up with the industry in 2009 when
the sector’s revenue decreased by as much
as 9.1%. Nevertheless, the recovery started to be
felt in most regions in the second half of 2010,
with emerging markets in Latin America, Asia and
MEA returning to growth.
We expect
telecom consulting revenue to have increased by
3.2% in 2011 and the return to 2008 pre-recession
levels in terms of revenue is not expected before
2012, when the world’s telecom consulting
revenue is forecasted to grow by 5.4%. Even so,
at that time, Western Europe will still lag behind
and will not have recuperated its recession loss,
with telecom consulting revenue still below 2008
levels.
‘With
many global telecom operators still suffering from
slowing revenue growth and with saturation increasing
in most countries and segments, we are not anticipating
for global telecom consulting revenue spend to return
to double-digit levels for the foreseeable future’
HOT TELECOM’s president Isabelle Paradis said.
Telecom consulting revenue is therefore forecasted
to grow by a CAGR of 5.7% over the next 5 years.
On a
regional basis, most regions have been impacted
by the economic crisis, however some have recovered
faster than others. Latin America, MEA and Asia
are and will continue to be the fastest growing
regions in terms of telecom consulting over the
next 5 years, while regions such as North America
and Western Europe have yet to return to pre-recession
levels.
North
America continues to be the largest telecom consulting
revenue region, on the other hand, Western Europe
has lost its place to Asia as the world’s
second largest telecom consulting market in 2010
and this trend is accelerating. In terms of growth,
Latin America and MEA have performed better than
more developed regions during the recession. With
the exception of the growth blip caused by political
instability in the MEA region, we anticipate that
this region will continue to be the fastest growing
over the next 5 years. We expect the current Eurozone
crisis to have a significant impact on Western Europe
into 2012, which could diminish telecom consulting
revenue growth in that year.
Find
out about the current status of the telecom consulting
sector and its potential for recovery in HOT TELECOM’s
new 40-page global report, which can be purchased
online through HOT TELECOM: http://www.hottelecom.com/telecom-consulting-report.html
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