The service provider telecom equipment market is expected to grow by $26 billion between 2014 and 2019 against the comparative five-year period between 2008 and 2013, said Dell’Oro Group.

Service provider telecom equipment market includes the access, carrier IP telephony, microwave, mobile RAN, optical, SP routers, SP Wi-Fi, and wireless packet core markets.

The telecom analysis report said the total wireless and wireline infrastructure market will grow at a 0 percent CAGR and eclipse $500 billion between 2014 and 2019.

Wireless and wireline telecom markets will grow at a CAGR of -2 percent and 3 percent, respectively between 2014 and 2019.

“The transformation of the way in which humans and machines communicate with one another will continue to drive operators to improve the quality, capacity, efficiency, and performance of both their wireless and wireline networks,” said Tam Dell’Oro, president and founder of Dell’Oro Group.

Telecom customers churn rates are between 1.5 percent and nearly 6 percent per quarter.

Telecom analysts firm Ovum says it takes on average, at least 3.5 years for telecoms to break even on SAC (subscriber acquisition cost). However the average customer lifetime for telecoms is only 2 years.

Telecoms need to monetize their big data analytics investments and launch initiatives that will deliver value to their customers, reduce churn propensity and reduce the overall telecoms SAC.

“While more than 70 percent of telecoms that have invested in big data have planned to apply big data analytics across the business, less than 20 percent of these telecoms have been able to fully deploy analytics to support customer-focused initiatives,” said Ovum analyst, Chantel Cary.

Meanwhile, an IHS survey said that network operators are moving toward software-defined networking (SDN). The study found that 82 percent of service provider respondents have either already deployed SDN, are now deploying SDN, or plan to evaluate it in 2015.

“The successful field trials and a few commercial deployments of SDN in the last year keep moving toward more commercial deployments in 2015, still mostly on a limited basis as operators put one or two use cases to the test under real-world conditions in their live networks,” said Michael Howard, senior research director for carrier networks at IHS.

Baburajan K
[email protected]