Global retail telecom revenues hit USD1.7 trillion

Global retail telecommunication revenues reached USD 1.7 trillion in 2016, representing 2.3 per cent of global gross domestic product (GDP), according to ITU’s new Measuring the Information Society (MIS) Report 2018 released on Tuesday.

TheNewsGuru (TNG) reports the telecom revenues in 2016 represented on average 3 per cent of GDP in Africa and the Arab States, compared to 2 per cent in Asia and the Pacific and the Americas, which excludes the United States and Canada, and less than 2 per cent in the CIS and Europe.

According to the MIS report, fixed-line revenue represented half of telecommunication revenues generated in 2016 worldwide. Globally, mobile revenues declined by 7 per cent between 2014 and 2016, from USD 924 billion in 2014 to USD 859 billion in 2016.

The report finds that mobile revenue growth is impacted by the uptake in services that run “over-the-top” (OTTs) of existing telecommunications infrastructure, and that the success of IP-messaging apps is often to the detriment of traditional text usage and the associated revenue.

It also noted that the ICT sector is characterized by large infrastructure investments, with growth in telecommunication capital expenditure driven largely by data demand and use in developing economies.

The MIS report also found that improved ICT regulation and policy-making have played a pivotal role in creating the conditions for the reduction of prices, ensuring that part of the efficiency gains of higher ICT adoption are passed on to consumers.

The report highlights that ICT prices have dropped globally in the last decade in parallel with the increase in access and use of ICT services.

Fixed-broadband services recorded the largest price drop of all ICT services. Mobile-cellular prices also maintained a steady downward trend in the period 2008–2017, in line with the continuous increase in mobile-cellular penetration.

“This year’s report shows how increased investment in broadband technologies is driving the global digital transformation and enabling more people to access a myriad of services at the click of a button,” ITU Secretary-General Houlin Zhao said.

“At the just-concluded Plenipotentiary Conference (PP-18) held in Dubai, ITU Member States approved the four-year Strategic and Financial Plan, which includes a strong commitment to ITU’s statistical work.

“We will work together to build the ICT infrastructure and develop ICT skills necessary to foster inclusive economic growth, drive innovation and bridge the digital divide,” he further stated.