TECH

IDC: Europe leads global communications growth: the new bet on 5G and AI

Despite a persistent climate of economic uncertainty, the global telecommunications and pay-TV services sector is showing resilience. According to the latest report from consulting firm IDC, global revenues in this market are expected to reach US$1.53 billion this year, representing year-on-year growth of 1.7%.

The most notable data from the analysis is the role of Europe, the Middle East, and Africa (EMEA). This is the region of the world where communications revenue growth will be most significant, with a projected expansion of 3.2%, reaching a total value of US$477 million. These figures demonstrate a slight upward revision compared to IDC's initial projections, highlighting the strength of the European market in this sector.

The sustainability of this growth does not come from traditional services, but from operators adapting to the digital age.

Mobile Services Dominate: Mobile services continue to be the main revenue generator. This growth is driven by two key phenomena: increased data consumption (for streaming, social media, and browsing) and the expansion of M2M (Machine-to-Machine) applications. These new revenue streams are effectively offsetting the continued decline in traditional voice and messaging revenues.

Broadband on the Rise: Fixed data services should also maintain a healthy growth trajectory, driven by increasing demand for high-speed broadband and higher-speed solutions.

Pay TV: The only area showing a slowdown in revenue growth is pay TV, which is feeling the strong competition from streaming platforms (Netflix, Amazon Prime, etc.).

The contrast of Asia-Pacific and the rise of India...The growth outlook is not universal. Projections for the Asia-Pacific region have been revised downwards. IDC points to economic uncertainty in crucial countries such as China, Japan, and Indonesia as the main cause of this slowdown.

However, India emerges as a strong bright spot, registering exceptional growth in Average Revenue per Mobile User (ARPU). This suggests that, while the Asian market faces economic challenges, monetizing data services in markets like India remains very lucrative for operators.

Despite the market's resilience, IDC predicts that global growth will be capped at an annual rate of 1.5% over the next five years. The climate of economic uncertainty, geopolitical tensions (such as the war in Ukraine), and political instability continue to be restraining factors.

Faced with these challenges, IDC expects telecom operators to increasingly focus on internal strategies for improving margins and operational efficiency. This is where Artificial Intelligence (AI) becomes crucial:

Cost Optimization: Large companies in the sector are investing in AI to optimize network operations (predictive maintenance), improve customer service (automated support systems), and prevent fraud.

Smart Monetization: Technology also has the potential to generate new revenue and improve margins through advanced fraud detection systems and offer personalization, with dynamic price adjustments assisted by AI.

In short, the growth of the communications sector is ensured by the transition to data and broadband. But the future of operators' profit margins will be increasingly determined by their ability to invest in AI to increase internal efficiency and create more personalized services.

IDC