COVID-19 to hinder 2020 communication services market despite surge


The global spending on telecommunications (telecom) services is set to reach $1.6 billion in 2020, according to a new study released by International Data Corporation (IDC).

Factors driving the market include an increase in the use of telecom services due either to nationwide lockdown or work-from-home policies.

However, this doesn’t directly translate into a surge in spending on telecom services due to many households having unlimited voice calls and unlimited internet services.

On the other hand, factors hindering the market growth include the harsh economic impact that a number of industries are enduring. Businesses are temporarily shutdown or are closed altogether.

The continued transition to IP and cloud services with lower ARPU as well as the reduction in GDP growth in the second half of 2020 will challenge the market.

Slower net adds in the consumer segment will make it difficult to activate net new devices and plans.

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Carrie MacGillivray, general manager of worldwide telecom, mobility and IoT research at IDC, said: “COVID-19 is leading to a lot of uncertainty around the spending impact on various technology markets. We expect the telecom services market to weather the current conditions better than other elements of the ICT market.

“The COVID-19 pandemic is highlighting the importance of connectedness. Telecom services are the common thread keeping us united as we weather this crisis.”

Click here for more information about the report.