The Covid-19 epidemic has created a huge fiscal deficit in the global telecom sector. Demand for telecom services has risen due to a lockdown announced to stem the spread of the novel coronavirus infection, but revenues have plummeted. According to a research report by Analysis Mason, the global telecom sector’s revenue fell by 4.3 trillion last year due to the epidemic. News Consultancy. the UK.
This year will see some growth in global telecom revenue. The demand for connectivity and remote work is on the rise due to the ongoing epidemic. Due to this, by 2023, the revenue of the global telecom sector is expected to return to the level before the outbreak of Covid-19. Over the past year, the world has been under house arrest. That is why the telecom sector’s revenue has declined in various segments, including roaming, pre-paid, and voice.
The year 2020 has put the world and business organizations in front of some important crises. Everyone has tested how important innovation in telecom services, technology, media, and entertainment was to stay connected with friends and family, find new mediums of entertainment and education, and take care of health. The demand for telecom connections has increased worldwide over the last year, but the business of telecom companies in other segments has not been at a very good level.
According to Analysis Mason’s forecast, one-third of the revenue the global telecom sector lost last year will be recovered this year. However, the existing pressure on telecom operators around the world will not be reduced.
Stephen Sell, director of consumer services at Analysis Mason, said many operators would be expected to report revenue growth from next April. However, it will not be possible to get out of the revenue deficit completely before the next three years.
The use of five mobile network technology is now increasing around the world. Commercial use of FiveG has started in important telecommunication markets. The growing global FiveG market is expected to reach 31 trillion ( 31 trillion) over the next decade, creating new business opportunities for telecom operators.
Sweden-based telecom gear maker Ericsson claims that the 3.6 trillion FiveG markets will grow over the next decade through communications service providers (CSPs) alone. The catastrophe of the Covid-19 epidemic has come down to industrial production, import-export, and consumer demand. In contrast, the telecom sector is in a somewhat comfortable position. With the exception of a few companies, most of the telecom companies will see revenue growth this year. However, the spread of five is expected to be delayed.
Over the next decade, the digital services business division alone will create 13.1 trillion in revenue opportunities for CSPs, according to Ericsson. The rise in the use of five related services will see a surge in the digital services business. About 40 percent of CSPs’ revenue from the digital services business will come from video, augmented reality (AR), virtual reality (VR), and cloud gaming demand under the FiveG network.
Today, Asia Pacific has become an important market for the telecom sector. But before 2022, there will not be many leaps in the growth of the telecom sector in the region. However, the region’s telecommunications sector’s risky debt will be largely under control amid the ongoing Covid-19 epidemic caused by the novel coronavirus infection. That is why even if the revenue growth is stable or slightly reduced, no abnormal situation will arise.