Telecoms, pay TV services spending to stay strong in 2020

The telecommunications and pay TV service industries are showing resilience in the face of COVID-19, with global spending forecast to reach $1.6 trillion this year, according to the International Data Corporation (IDC).

The revenue figure, a year-on-year decline of just 0.8%, is grossly out of tune with related sectors, like enterprise infrastructure, which is forecast to drop 3% during the same period.

The IDC said that, unlike other tech industries, damage to telecom and pay TV (caused mainly by business closures) will be offset by increased consumption of these services from stay-at-home consumers, during the COVID-19 lockdown.

In addition, telecommunications will stay resilient, given that operators have already adapted quickly to forced changes in customer behaviour.

"As the 5G revolution is being put on hold or delayed by the pandemic, the already proven technologies and business cases will keep the ball rolling in these uncertain times," said IDC Research Director Kresimir Alic.

"Hosted VoIP/UCaaS, collaboration tools, SD-WAN, IoT, along with network optimisation and increased reliability will keep consumers and businesses connected during the tough days of pandemic and global recession."

The largest segment of these markets, the mobile segment, will see the largest decline in spend, given the decreased revenue from roaming charges and slower net additions. Similarly, fixed voice services will drop, with cash-strapped users rejecting these features to save money.

In contrast, fixed data services are expected to increase by 2.9%, owing to the heightened demand for reliable internet connectivity during lockdown.

The overall market decline will be seen in all geographic regions, with Europe Middle East, Africa and APAC taking the largest hit. America’s spending will only drop by 0.4%.

Image credit: ©stock.adobe.com/au/terovesalainen