The wireless telecommunications carriers market has been forecast to grow at an average annual rate of 2.0%, increasing from a value of $1.5 trillion in 2013 to hit a total of $1.7 trillion by 2018.
Over the past five years, wireless communications have become essential to the day-to-day lives of the majority of the world's consumers. As a result, demand for the industry has surged with revenue following suit.
In general, industry firms have adopted two primary strategies to grow revenue: growing subscriber numbers and increasing average revenue per user (ARPU). These strategies are largely dependent on the domestic economies in which firms operate.
The overwhelming majority of new wireless subscriptions over the past five years have emanated from emerging markets in Asia, particularly those of India and China.
There are now over one billion mobile subscribers in China, while India is anticipated to surpass the one billion mark in 2013. Combined, these two countries are adding about 75.0 million new subscribers every quarter, according to Chetan Sharma Consulting.
This rapid increase in subscribers from these markets is expected to help boost global industry revenue 4.8% in 2013.
In contrast, markets in the developed world have reached saturation. As such, wireless carriers are unable to achieve the subscriber growth rates of their counterparts in emerging economies.
Instead, carriers have focused more heavily on expanding ARPU by providing more expensive mobile data services; demand for these services has exploded over the past five years with the widespread proliferation of smartphones and tablets.
Over the next five years growth will likely be driven by the ongoing rollout of fourth generation (4G) networks, which provide the fastest data-transfer speeds available. Meanwhile, spectrum shortages in developed economies will continue to encourage consolidation.
For more information on the wireless telecommunications carriers market, see the latest research: Wireless Telecommunications Carriers Market
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