Report: Telecom Spending Forecast to Increase up to 5% in Next Two Years
Companies plan to increase their telecom spend by up to 5% in the next two years, according to a new telecom spending forecast from Strategy Analytics. Researchers attribute the forecast to the COVID-19 pandemic, which put a large burden on US businesses to become flexible, agile, and safe, with digitalization being a critical strategy.
Specific investment areas include 5G, Wi-Fi 6, cloud computing, Device-as-a-Service (DasS) and IoT.
“U.S. companies want mobile devices and business mobile apps that create actual, shared engagement regardless of location more than ever. Company paid corporate liable smartphones given to employees [have] increased +13 points over the pandemic, with core technologies such as Cloud, DaaS, Blockchain, 5G, AI, facilitating the move to WFH/Hybrid working environments,” said Gina Luk, Strategy Analytics associate director of mobile workforce strategies, in a prepared statement.
Telecom Spending Forecast
In the research, Strategy Analytics interviewed more than 300 IT decision makers (ITDM) across nine vertical markets in the U.S. Among the findings:
- One in five ITDMs expect IT spending will increase by more than 10% in the next two years.
- The number of people who work from home more than one-fifth of the time rose more than nine percentage points due to COVID-19. One quarter of US employees spend 2 days or more per week video conferencing.
- Almost half of US companies have budgeted for DaaS.
“Software is continuously moving to the cloud among U.S. businesses, especially Data, IoT and File Sharing related software,” added Andrew Brown, Strategy Analytics executive director of enterprise research, in a prepared statement. 5G is also ramping fast among US Businesses. There is an opportunity for US operators to monetize 5G, with 30% of businesses planning to integrate 5G within the next year.”