Despite declining revenues from mobile and fixed-voice data, and with cord-cutting taking its toll, total service revenues in US telecom and pay-TV are expected to increase at a CAGR of 0.7% between 2019 and 2024 to reach $419.4 billion says analysis from Global Data.
The study identified mobile broadband and fixed broadband revenues as the growth drivers for a market that is set to return to growth after what will likely be a contraction in 2019. Namely, Global Data forecasts that total telecommunications and pay-TV service revenue will reach $404.5 billion by the end of this year, representing a 0.5% decline compared with 2018.Looking at segment performance, the study revealed that fixed broadband revenue will expand at a CAGR of 4% over the 2019-2024 period, reaching US$78.5 billion in 2024. Growth will be mainly driven by increased adoption of ultrafast broadband service connections, supported by operator investments in fibre infrastructure across the US. Pay-TV revenue is set to drop from $94.4 billion in 2019 to $84 billion by 2024 as a result of cord-cutting trends.
The Global Data forecast also showed that mobile data will remain the leading contributor to telecom service revenue over the forecast period, increasing from US$131.2 billion in 2019 to US$194.6 billion in 2024. Growth will be supported by the uptake of smartphone subscriptions, increasing demand for mobile data services, and growing adoption of 5G services.
