Covid-19 to have limited impact on worldwide comms services and pay-TV in 2020 | Media Analysis | Business
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Despite the huge impact on that it is having on economies across the globe, Covid-19 will likely have limited effect on telecoms and pay-TV services business according to research from IDC.

BT EE 5G 21Nov2018In its Worldwide Semiannual Telecom Services Tracker, the analyst calculates that telecoms services and pay-TV will reach nearly $1.6 trillion by the end of 2020, a decrease of 0.8% compared with 2019. IDC expects the decline to continue in 2021, but at a somewhat lower degree.

Looking at drivers for these projections, IDC noted that these industries are among the most resilient sectors of the global economy during the Covid-19 crisis and that the of telecom services. However, IDC does caution that the economic impact from shutting down businesses, higher unemployment, frozen tourist activities and reduced consumer spending on non-essential products and services will have a negative impact on the market.

Pay-TV services are set to be boosted by the lockdown, but also affected by the economic downturn, so IDC believes that spending in this category is expected to decline slightly. Fixed data services spending will increase by 2.9% in 2020 as the need for more fixed Internet connectivity determined by the "great lockdown" is likely to help this segment maintain growth.

The mobile segment, the largest segment of the market, will post a slight decline in 2020 due to lower revenues from roaming charges, fewer mobile data overages due to the stay-at-home situation, and slower net additions, especially in the consumer segment. “As the 5G revolution is being put on hold or delayed by the pandemic, the already proven technologies and business cases will keep the ball rolling in these uncertain times,” said Kresimir Alic, research director with IDC's worldwide telecom services team commenting on the Worldwide Semiannual Telecom Services Tracker.Worldwide Semiannual Telecom Services Tracker.