Consumer telecoms spending to hit $2tn by 2012

Revenue from consumer telecoms network services will hit $2tn globally by 2012 as the digital divide between developed and developing nations deepens, market watchers predict.

In-Stat expects the sector to grow at a steady annual pace of about 5.7 per cent, on average, over the next five years.

The strongest growth will be in the broadband and pay-TV sectors, but 60 per cent of total revenue will be derived from consumer mobile services, the research firm notes in a new report.

"The digital divide will continue to grow. By 2012 broadband penetration in developed countries will exceed 85 per cent, while developing countries languish at less than 10 per cent," said In-Stat analyst Keith Nissen who wrote the report.

"Mobile operators in developed nations must look to new 3G applications and bundled services for increased average revenue per customer.

"Despite the anticipated rapid growth of telco TV services, 73 per cent of total pay-TV households worldwide in 2012 will still be cable TV service subscribers."

The report forecasts that the number of VoIP subscribers will more than double in the next four years. It expects 2008 to be the year that revenue from pay-TV services surpasses revenues from fixed voice services.

By 2012 broadband revenue will be "getting close" to fixed voice service revenue, according to the study.