USA: Emerging markets will continue to be the driver of growth in the converged global communications, media and technology industries, which will reach the 7 billion mobile subscription mark in December 2013. Furthermore, growth in emerging market service revenue will outpace growth in developed market service revenue by 5:1, according to a new report released by Pyramid Research.
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"Reaching the 7 billion mobile subscription mark by year's end is particularly significant because it translates into a 100 percent penetration mark," says Daniel Amparan, MD for Pyramid Research. "Mobile subscribers in the Africa & Middle East region will surpass the 1 billion mark in the first quarter, making it the second region to reach this milestone after Asia-Pacific."
"Exposure to emerging markets has become a critical factor for success in an industry characterized by stagnation in developed markets, intense competition, consumer choice and disruptive business models," notes Amparan.
"While telecom service revenue in emerging markets will increase five times faster than in developed markets this year, nearly 90 percent of the 2 billion subscribers to come online in the next five years will reside in emerging markets," Amparan explains. "This trend will make mobile service revenue in emerging markets in 2015 larger than mobile service revenue in developed markets for the first time ever."
Other top trends include:
* 4G spectrum allocation: Emerging markets are lagging, but will be better positioned to do it right.
* 2013 will mark the beginning of the end for unlimited data pricing, but device subsidies are here to stay.
* The basis of competition shifts from coverage to content and services. Infrastructure sharing will intensify.
* Margin pressure will accelerate consolidation in the mobile sector in Africa.
* Well-capitalized emerging-market based players will expand their presence in Europe.
* Fiber will start pushing DSL toward obsolescence in the Middle East.