The worldwide recession predictably slowed down the global telecommunications market as wireless carriers, broadband providers and data-center owners struggled with falling profits and a lack of sufficient capital to fund expansions or upgrades. While financial markets remain unsteady, international firms say the industry is poised to rebound next year as companies resume plans to invest in networks and facilities.
Despite a decrease in global telecommunications capital spending in 2009, the industry’s annual revenue is expected to grow at a compounded rate of nearly 10.3% over the next five years and reach $2.7 trillion by 2013, according to a report from Boonton, N.J.-based market research firm Insight Research Corp. Driving the growth is robust demand for communications services in developing countries and high-speed broadband in established markets. “The worldwide economy is in turmoil, there is no doubt about that, but over the long haul we expect the telecommunications industry to continue growing,” says Insight president Robert Rosenberg. “Telecom is as necessary to development as roads and bridges, so we expect it to fare much better than other economic segments that may take longer to return to normalcy.”