Telecommunication services spending is expected to reach USD 1.6 billion in 2020 with nearly flat growth compared to 2019, according to data from IDC. The Covid-19 pandemic impacted the market in several ways.
On the positive side, researchers observed increased use of telecom services due either to nationwide lockdown or work-from-home policies that many companies implemented for their employees to follow. However, this doesn't directly translate into a surge in telecom spending due to many households having unlimited voice calls and unlimited internet services. Commercially, the spend is inhibited due largely to the harsh economic impact that a number of industries are enduring. Businesses are either faced with temporary shutdowns or are closed altogether.
The continued transition to IP and cloud services with lower ARPU as well as the reduction in GDP growth in the second half of 2020 are key factors that challenge the market. From a mobile perspective, there will be an additional negative impact including slower net adds, especially in the consumer segment, as retail outlets are closed during lockdowns making it difficult to activate net new devices and plans.
