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Telcos should own at least 15% of enterprise ICT market, report says

Selling the likes of security and data storage services to businesses is a big growth area for telcos but will not be enough to push overall enterprise revenues higher, according to new research by Analysys Mason.

Selling the likes of security and data storage services to businesses is a big growth area for telcos but will not be enough to push overall enterprise revenues higher, according to new research.

The worldwide market for telecoms business services will grow from $411 billion this year to $415 billion in 2022, a measly one percent rise, Analysys Mason has predicted.

In Western Europe the picture is bleaker with enterprise revenues set to be flat over the period.

The analyst house pointed the finger at enterprise voice and data services, which it said are in decline having reached saturation point, especially in high-income markets.

However, revenue from Internet of Things connectivity will increase at over 10 percent per year, but the biggest growth opportunity lies in the enterprise ICT market, researchers said.

This segment, which covers cloud and security services, is estimated to be worth more than $230 billion by 2022.

With telcos "well placed" to create bundled offerings of such services they should expect to own "at least" 15 percent of this market by 2022, Analysys Mason said.

Individual operators could take a larger share by focusing on partnerships and M&A, it added.

Analysys Mason Analyst Catherine Hammond said: "Operators need to look at this as an opportunity to upsell new services.

"When you're hitting the wall in terms of revenues, it's about bundling, upselling and retaining customers by serving them with a bigger, better package of services.

"By providing cloud and business services to all sizes of enterprise, operators will be able to sustain their revenue and make themselves increasingly valuable to their customers."

Telcos are making headway in this regard.

The article was first published by European Communications. The original article can be found here: https://www.eurocomms.com/industry-news/12661-telcos-should-own-at-least-15-of-enterprise-ict-market-report-says