In a new report, TM Forum says service providers implemented cost-reduction measures early and are now producing positive revenue growth. Total revenue growth ranges from slightly negative to double-digit positive depending on market and region, with developing and emerging markets outperforming the developed markets.
Available today, TM Forum’s new business intelligence report, called “Winning in a Shrinking World: Seizing the Opportunities,” analyzes revenue growth by region and steps to assure successful completion of transformation initiatives. It combines Analysys Mason's 2008-2112 revenue growth expectations with TM Forum's Q1 2009 year-to-year performance data.
The analysis concludes that the developed markets of North America, Western Europe, and Asia/Pacific have the softest performance. Some negative growth was seen for the recent 12-month period, but the majority of the developed market is delivering flat to low double-digit growth. On the other hand, developing and emerging markets show stronger overall performance with total revenue growth averaging 10-20 percent.
The report’s conclusions include:
- The economic downturn is real
- Cost reduction is a primary driver
- Strategic initiatives continue
- Hot services are still hot.
“Successful CSPs are focusing on how they can turn the current economic malaise to their advantage,” said Martin Creaner, president and COO, TM Forum. “Playing it safe by just cutting costs will miss today’s and tomorrow’s opportunities. The winners will be the companies that combine fiscal caution with focused aggression along a strategic path.”
