COVID-19 Could Trigger 2.6 Percent Global Wireless Service Revenue Decline in 2020
New analysis from Strategy Analytics Service Provider Group indicates the COVID-19 induced 2020 Recession will see all regions suffer in terms of revenue declines in 2020 with only a soft recovery expected in 2021.
“After a turbulent 2020/21, wireless service revenue will begin to stabilize and recover from 2023 as 5G provides a stronger contribution to connectivity revenue. Nevertheless service provider revenues which peaked in 2017 will continue to decline over the next 5 years,” said Phil Kendall, Executive Director at Strategy Analytics and the report author.
- The report noted significant levels of unemployment or furloughing is impacting disposable income of those impacted. The mobile phone remains a critical tool for most; however affordability is still impacting expenditure profiles.
- Roaming revenue, which typically accounts for 2-4 percent of service revenue for operators, has been hit significantly and in many regions will run at suppressed levels into 2021 as travel behavior struggles to return to ‘normal’.
- On the positive side, the analyst firm suggests that broadband connectivity has become a must-have during lockdowns and heavy home working/studying patterns. Many operators are experiencing significant increases in mobile voice and data traffic and the high levels of dependence on mobile phones has seen the wireless sector less impacted than some industries.
Read the full report HERE
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