While global trends forecast a 5.7% annual revenue growth in consumer telecom network services over the next five years, recent trends in the Middle Eastern telecom market suggest future growth at more than double this rate.
According to a new report from research firm In-Stat, the Middle East and Africa region is currently experiencing the highest growth rates within a consumer telecommunication network, which is set to reach $2 trillion in global revenues by 2012.
Recent years have seen profound developments and tremendous growth in the telecommunications sector in the region. After all, information and communications technology is one of the single most influential forces in society today. It is no surprise then, that with consistently growing numbers of subscribers and mobile penetration rates, especially in the GCC, markets are approaching saturation and operators are seeking new platforms for telecom evolution.
It all started with the expansion and modernization of the telecommunications infrastructure; since then, there has been a privatization and liberalization of the market. In an effort to harness the current momentum of the market, which generated a remarkable compound annual growth rate of 44% between 2003 and 2007, telecom operators are now looking towards the extension and diversification of the industry as future growth strategies.
High levels of growth will become increasingly difficult to sustain by relying on traditional models of expansion. Thus, the region will begin to see the market move in new directions with cross border consolidation, and will witness new convergence trends between the telecom industry and other sectors, such as media and finance. There will also be continued capitalization on emerging technologies.
From drums and smoke signals to iPhones and the internet, it is difficult to predict what’s next. What is certain, though, is that the Middle East and Africa will continue to watch as the telecommunications industry becomes even more creative, sophisticated, and user-friendly.
