Economy, Sci & Tech

Telecoms Market to Drive Growth Through Data

Telecoms Market to Drive Growth Through DataTelecoms Market to Drive Growth Through Data

Iran’s telecommunications market is reported to have generated $6.5 billion in service revenues through 2015 and is now likely to grow at a Compound Annual Growth Rate of 0.4% in the five-year period ending 2020.

Mobile data subscriptions and fixed Internet packages are believed to be the fastest-growing segments of the Iranian telecoms market over the period, according to a new document released by Pyramid Research.

To offset the decline in traditional voice services, operators are now focusing on improving network infrastructure to increase Internet penetration, especially in smaller towns and rural areas that generally lag behind urban counterparts.

Also, network operators, both wired and wireless, will also be exploring ways to drive revenue growth through such services as Machine-to-Machine and Internet of Things, according to the report.

Mobile operators are driving this change by introducing 3G and 4G long-term-evolution, as well as upgrading Iran’s copper telephone lines to fiber optic networks, which is currently underway through public-private partnerships.

The report adds that due to slow turnovers, Iranian telecom operators have had a 1.6% decline in annual revenues year-on-year to $6.5 billion. However, that is expected to turn around this year as the telecoms infrastructure is currently witnessing its biggest overhaul since the computerization trend in the 1990s.

The report noted that the decline of 2015 will not likely be repeated over the period ending 2020. It adds that the regulatory environment is also being changed to favor newer telecoms technologies with the help of the Ministry of Communications and Information Technology.