2014 Global Telecoms Industry - Key Trends - OTT, M2M, Big Data and the Cloud

Publication Overview

This annual report offers a wealth of information on the broader global telecommunications sector and is a valuable resource of insights, examples and trends. It provides important insights into developments such as M2M; Big Data; Cloud Computing and the Internet of Things. Supported by key statistics, analysis and cases studies; this report provides a unique perspective on the key trends shaping our dynamic telecoms industry.

Subjects covered include:


  • The Top Global Trends for Telecoms and Digital Economy;
  • Insights into the Impact of Over-The-Top (OTT) Services;
  • Key Global Telecoms and Broadband statistics;
  • Insights into the Key Global Trends of  M2M, IoT and Big Data;
  • Information and statistics on the Global Data Centre Market;
  • Insights into Customer Experience and Tariffs;
  • Cloud computing trends.

Researchers:- Kylie Wansink, Paul Budde.
Current publication date:- July 2014 (11th Edition)

Executive Summary

OTT, M2M, Big Data and the Cloud drive the Global Telecoms Industry

The broader telecoms environment continues to be very challenging in 2014 and looking towards 2015 there still are many technological, economic and regulatory changes that the industry faces. The market is highly competitive and ruthless with those operating in the telecoms, mobile, broadband, digital media and ICT industries alike all scrambling to retain and build new revenue streams.

Every day hundreds of thousands of new devices, as well as new people, are added to the telecommunications networks that span the globe and there is no indication whatsoever that the demand is going to slow down any time soon – we see it continuing for decades to come. Yet, at the same time, many telcos and ISPs are struggling to maintain their profitability.

This defies economic logic. Market economics will tell you that when demand increases companies are stimulated to build more in order to sell more; and if that doesn’t happen other companies will happily step in to take up the slack and compete for that extra demand. But this is not happening in the telecoms market. Operators are dragging their feet in the building of new infrastructure – in particular new fixed infrastructure such as FttP. In the mobile market also we see great problems on the supply side, with network congestion and network breakdowns.

In these conditions; the telecoms industry is again realising the importance of the customer as increased competition and economic pressure forces the operators to attract and retain customers. New tools and techniques are now being deployed to assist this process, with real-time processing and data analytics being used to improve the customer experience. Operators are also increasingly reviewing service packages in order to entice the customer.

While data management is becoming critical to business operations – very few companies have a good understanding of where their data is at any given time. As well as this; the enormous amount of data that is now being collected is placing a real strain on infrastructure, software and services. There clearly must be more intelligent ways to manage the data and both cloud deployments and Big Data analytics will remain hot trends for the near future. Indeed by 2015, BuddeComm can see that “the cloud” will be just another delivery model for a range of "as-a-service" offerings.

The role of external data centres are set to increase with organisations embracing this concept. The data centre market includes tele-housing facilities, co-location facilities, cloud and IT services, content hosting, connectivity and interconnection. They are important for the emerging developments surrounding cloud computing and the Internet of Things (M2M).

Mobile technology and smart devices continue to lead the way and mobile broadband has in fact become the fastest growth area for the overall telecoms sector. This in turn sees the number of Internet users continues to increase as the penetration of both fixed and mobile broadband becomes more accessible around the globe.

While the story for the traditional players in the telecoms market is all about shrinkage, on the other hand we see significant growth in many of the new subsectors of the broader ICT market, which includes cloud computing, data centres and M2M. The big picture reveals that many of the benefits and opportunities for telecommunications stretch far beyond the network and apply to social and economic benefits, healthcare, education, digital economy, businesses, new job creation and the green economy. All of these are potential opportunities and benefits that can be created on top of a robust global telecommunications infrastructure.

Examples of key insights:

  • The telecoms sector is the largest industry in terms of employment in the world and therefore developments in this sector have far reaching impact.
  • The role of external data centres is set to increase with organisations embracing this concept.
  • It has become clear that Over-The-Top (OTT) is ‘the new normal’ for the telecoms industry - with the emerging all-IP networks; telecoms services are basically moving to an OTT model.
  • Telecommunication infrastructure has become a commodity and it is about time we started treating it as that. The added value no longer resides in the commodity itself, but in what you can do with it; new revenues are not coming from the commodity but from the products and services that are built on top of it.
  • A vertically-integrated telco models make it impossible to adequately react to market changes.
  • It has now well and truly sunk in among most of the businesses experiencing challenging economic circumstances – adapt or perish. There won’t be many organisations that will not be affected by the rapid changes in technology. The key here is that by using these new technologies you can start taking costs out of your business model.
  • Customer experience is increasingly important to service differentiation; retaining customers in this competitive and economic environment is challenging.

Data in this report is the latest available at the time of preparation and may not be for the current year

Table of Contents

  • 1. Global Telecoms – A Transforming and Challenging Sector
    • 1.1 The Top Global Trends for Telecoms
      • 1.1.1 Cloud technology
      • 1.1.2 Big Data and Smart Analytics
      • 1.1.3 Data centres
      • 1.1.4 Machine-to-Machine (M2M)
      • 1.1.5 Over-The-Top (OTT) services and content
      • 1.1.6 Further specific trends of note
      • 1.1.7 Conclusion - The demand and supply imbalance in telecoms
    • 1.2 OTT – The normal for the industry
      • 1.2.1 Transforming the telecoms industry
      • 1.2.2 Telcos have already lost the current OTT battle
      • 1.2.3 The demand and supply imbalance in telecoms
      • 1.2.4 Vested interests
      • 1.2.5 The digital business buzzword is also ‘transformation’
      • 1.2.6 What will be driving these new investments?
      • 1.2.7 Hot sectors for OTT services
      • 1.2.8 How to move forward?
  • 2. Global Telecoms – Big Picture Statistics
    • 2.1 Key Global Telecoms Statistics
      • 2.1.1 Key global trends for telcoms industry
      • 2.1.2 Global mobile key statistics
      • 2.1.3 Global Internet key statistics
      • 2.1.4 Global telecommunications expenditure and revenue
      • 2.1.5 Global telecoms traffic
      • 2.1.6 Satellite services
      • 2.1.7 Ranking of top carriers
      • 2.1.8 Conclusions
  • 3. Specific Key Trends and Developments
    • 3.1 M2M; Internet of Everything and Big Data
      • 3.1.1 2014: touted as the year of M2M, but ...
      • 3.1.2 Internet of ‘Things’
      • 3.1.3 Who will dominate the IoT market?
      • 3.1.4 Telcos and the science of Big Data
      • 3.1.5 From SCaDa to IoT
      • 3.1.6 Sensors
      • 3.1.7 RFID
      • 3.1.8 Application examples
    • 3.2 Data Centres
      • 3.2.1 The changing market of data centres - market analysis
      • 3.2.2 Key global data centre trends and statistics
      • 3.2.3 Glimpses of the future
    • 3.3 Customer Experience and Data Processing
      • 3.3.1 Introduction: global telecoms market
      • 3.3.2 Insights into global mobile churn
      • 3.3.3 Case study – Orange
      • 3.3.4 Customer experience key to the future of the retail market
      • 3.3.5 Insights in global mobile ARPU
      • 3.3.6 Insights into global mobile termination
      • 3.3.7 Insights into global mobile roaming
      • 3.3.8 The retail market needs to lift its game
      • 3.3.9 Solution: high quality data and analytics
      • 3.3.10 Contextual intelligence
      • 3.3.11 Data analytic application examples
      • 3.3.12 Business understands need for real-time processing
    • 3.4 Cloud computing
      • 3.4.1 The cloud computing revolution
      • 3.4.2 Cloud computing for government
      • 3.4.3 Cloud computing for enterprise
      • 3.4.4 The complexities of cloud computing
      • 3.4.5 Unified Communications (UC) and the cloud
      • 3.4.6 Cloud computing market statistics
      • 3.4.7 How to manage and secure big data
      • 3.4.8 Other recent trends
      • 3.4.9 Conclusion
      • Table 1 – Global investment in green data centres – 2012 - 2015
      • Table 2 – Global - telecom statistics at a glance – 2013; 2014
      • Table 3 – Global - mobile subscriptions and annual change – 2009 - 2014
      • Table 4 – Regional - mobile subscribers – 2009 – 2013
      • Table 5 – Global – mobile broadband market share by technology – Q1 2013
      • Table 6 – Regional – mobile broadband connections – Q1 2013
      • Table 7 – Top ten OECD countries by wireless broadband subscriptions – 2011; mid 2012
      • Table 8 – Global - Internet users and annual change – 2009 - 2014
      • Table 9 – Regional – market share of broadband subscribers – Q2 2012; Q1 2013
      • Table 10 – Global - fixed broadband subscribers and annual change – 2005 - 2014
      • Table 11 – Top ten broadband countries by subscribers – Q2 2012; Q1 2013
      • Table 12 – Top ten broadband countries by penetration –2012
      • Table 13 – Global - broadband market share by access technology – Mid 2010; Mid 2012; Q1 2013
      • Table 14 – Global – broadband subscribers by access technology – 2013
      • Table 15 – Global - telecoms capital expenditure (CAPEX) – 2008 - 2014
      • Table 16 – Global - mobile capital expenditure (CAPEX) – 2010 - 2014
      • Table 17 – Global – ICT spending – 2012 - 2015
      • Table 18 – Global - telecoms expenditure as a percentage of GDP – 1990; 2006; 2009; 2012
      • Table 19 – Global - telecoms services revenue – 2008 - 2014
      • Table 20 – Global - monthly mobile data traffic – 2000; 2011 - 2013
      • Table 21 – Regional - mobile data traffic growth – CAGR 2012 - 2017
      • Table 22 – Global - satellite industry revenue – 2008 - 2013
      • Table 23 – Global - satellite services revenue – 2003 - 2013
      • Table 24 – Global - mobile satellite devices – 2008; 2010; 2018
      • Table 25 – Top 16 major parent mobile carriers worldwide by subscribers – 2013
      • Table 26 – Top 10 major fixed-line parent carriers worldwide by subscribers - 2013
      • Table 27 – Global M2M connections – 2010; 2013; 2014
      • Table 28 – Global spending on Big Data – 2013; 2018
      • Table 29 – Global investment in green data centres – 2012 - 2015
      • Table 30 – Orange mobile customer churn – 2003 – 2014
      • Table 31 – Orange mobile customer acquisition costs – 2007 - 2013
      • Table 32 – Global average mobile monthly ARPU – 2005 - 2014
      • Table 33 – India - mobile ARPU by technology, prepaid/postpaid/blended – 2012
      • Table 34 – India - mobile ARPU by technology, prepaid/postpaid/blended – 2013
      • Table 35 – India - mobile ARPU (GSM and CDMA) – 2005 - 2013
      • Table 36 – United Kingdom - MTRs by operator (pence per minute) – 2010 - 2015
      • Table 37 – New Zealand - Telecom and Vodafone network termination rates – 2009 - 2014
      • Table 38 – Global average Mobile Termination Rates – 2009; 2011; 2013
      • Table 39 – Examples of Mobile Termination rates by region
      • Table 40 –Global mobile roaming revenue – 2000; 2012; 2018
      • Table 41 – Global Platform as a Service (PaaS) revenue – 2011 - 2014
      • Table 42 – Global Software as a Service (SaaS) spending – 2012 - 2014
      • Table 43 – Global enterprise spending on cloud services and infrastructure – 2011 - 2017
      • Chart 1 – Global - mobile subscriptions – 2009 - 2014
      • Chart 2 – Global - Internet users – 2009 - 2014
      • Chart 3 – Orange mobile customer acquisition costs – 2007 - 2013
      • Chart 4 – India - mobile ARPU (GSM and CDMA) - 2005-2013
      • Exhibit 1 – Healthcare monitoring for the elderly
      • Exhibit 2 – Telstra leading the global telco move towards the OTT model
      • Exhibit 3 – WCIT-12 disappoints, more work to be done
      • Exhibit 4 – Major global fixed satellite service operators
      • Exhibit 5 – The first major M2M alliances
      • Exhibit 6 – The OneM2M initiative
      • Exhibit 7 – Deutsche Telekom and PISA start smart city project
      • Exhibit 8 – Item-level RFID use
      • Exhibit 9 – RFID spectrum frequencies and application examples
      • Exhibit 10 – Smart shopping
      • Exhibit 11 – Lifetime customer relationships
      • Exhibit 12 – Many Eyes – e-science web site example
      • Exhibit 13 – GigaPort3
      • Exhibit 14 – Real-time processing
      • Exhibit 15 – Examples of large data centres around the world
      • Exhibit 16 – Virtualisation
      • Exhibit 17 – Summary of key global trends for data centres
      • Exhibit 18 – Google Data Centres
      • Exhibit 19 – Artificial Intelligence (AI)
      • Exhibit 20 – Carrier attributes churn to poor network coverage
      • Exhibit 21 – Mandated MTR reductions in Greece
      • Exhibit 22 – Bundling services in Europe
      • Exhibit 23 – Real-time processing
      • Exhibit 24 – Watson – cognitive computing
      • Exhibit 25 - Key characteristics of contextual intelligence in customer service
      • Exhibit 26 – Definition: Cloud computing
      • Exhibit 27 – Amazon Web Services – a public cloud leader
      • Exhibit 28 – Examples of key cloud models
      • Exhibit 29 – Examples of government cloud projects
      • Exhibit 30 – Cloud principles
      • Exhibit 31 – Examples of enterprise cloud projects
      • Exhibit 32 – Planning Tool for Resource Integration, Synchronization, and Management (PRISM)
      • Exhibit 33 – IBM SmartCloud

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