Telecoms Services Forecast for Small and Medium Enterprises: Western Europe 2017-2022

  • ID: 4402170
  • Report
  • 37 pages
  • Analysys Mason Group
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"We expect growth in new business services for small and medium enterprises to alleviate falling operator revenue from traditional voice and data services in Western Europe."

Small and medium-sized enterprises (SMEs) represent a significant percentage of the enterprise market in Western Europe, accounting for half of operators’ enterprise revenue in 2016. We estimate that operators’ retail revenue from SMEs in Western Europe will be EUR35.3 billion in 2017, with the potential to grow slightly to EUR35.7 billion by 2022. Revenue growth will be primarily driven by 'other business services', such as unified communications, security, and cloud services (including software-as-a-service and infrastructure-as-a-service).

This report provides:

  • forecasts for operator services to SMEs, including fixed and mobile voice and data services and other business services including security and cloud services
  • an estimate of the total market for new business services and the likely share achievable by communications service providers (CSPs) for each service
  • quantification of revenue, connections or users, and ARPU for each service and each SME segment (micro, small and medium)
  • demographic data on the total number of employees, enterprises and sites within each segment
  • data for the region as a whole and for 6 countries
  • individual profiles for France, Germany, Italy, Spain, Sweden and the United Kingdom.

Coverage

  • Western Europe

Countries modelled individually

  • France
  • Germany
  • Italy
  • Spain
  • Sweden
  • UK

Mobile

  • Voice, messaging and handset data
  • Mobile broadband
  • IoT connectivity (mobile and LPWA)

Fixed

  • Narrowband and VoBB
  • ADSL/SDSL, vDSL, FTTP/B, cable, BFWA, other fixed broadband
  • Dedicated connections up to 100Mbps, >100Mbps and up to 1Gbps, and >1Gbps
  • Traditional managed services
  • IoT connectivity

Other business services

  • Unified communications
  • Security
  • Colocation and hosting
  • Private cloud
  • Software-as-a-service (SaaS, public cloud)
  • Platform-as-a-service (PaaS, public cloud)
  • Infrastructure-as-a-service (IaaS, public cloud)
  • Enterprise mobility
  • Desktop management

Enterprise size

Segments

  • Micro (0–9 employees)
  • Small (10–49 employees)
  • Medium (50–249 employees)
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Executive summary
Executive summary: Growth in other business services will allay declining revenue from traditional voice and data services
Regional forecasts
SME revenue from new business services will grow, while traditional voice and data services stagnate or decline
Mobile data and fixed broadband are key services for micro enterprises, while larger SMEs also rely on dedicated connections
A steady increase in penetration and usage of mobile services by SMEs may stabilise mobile service retail revenue as prices decline
A continuing significant decline in fixed voice drives down overall fixed service revenue, even as data revenue increases
SMEs will continued to migrate to higher bandwidth services: vDSL and FTTP replace ADSL and dedicated connections move to >100Mbps
The growing market for other business services offers CSPs an opportunity to have a share in new revenue streams from SMEs
Key other business services for CSPs include security, colocation and hosting, and SaaS
Country-level forecasts
France: CSPs must increase their sales of other business services to maintain their current levels of revenue from SMEs
Germany: Voice services will remain an important source of revenue as other business services offer potential for growth
Italy: Growth in other business services will alleviate a falling revenue stream from voice and data services
Spain: Revenue for traditional services will stabilise and other business services continue to grow, following recent declines
Sweden: Revenue will gradually decline, due to price pressure on services that are already close to saturation
UK: Overall revenue will be almost flat, and the shift from voice to data and other services will continue gradually
Forecast methodology and assumptions
Market definition
Modelling approach
Mobile services
Fixed services
Other business services
Geographical region
About the author

List of figures
Figure 1: Retail revenue from SMEs by service type, Western Europe, - 2022
Figure 2: Connections for SMEs and CAGRs by type of connection, Western Europe, 2017-2022
Figure 3: Percentages of retail revenue, total employees and total enterprises by enterprise size, Western Europe, 2017
Figure 4: Percentage of retail revenue from SMEs in 2017 and CAGR for -2022 by service type, Western Europe
Figure 5:Retail revenue from SMEs by service type, Western Europe, -2022
Figure 6: Percentages of business site, total employees and total enterprises by enterprise size, Western Europe, 2017
Figure 7: Retail revenue from SMEs by service type and enterprise size, Western Europe, 2017 and 2022
Figure 8: Percentages of mobile service retail revenue and total employees by enterprise size, Western Europe, 2017
Figure 9: Mobile service retail revenue and connections for SMEs, Western Europe, 2013-2022
Figure 10: Percentages of fixed service retail revenue and total business sites by enterprise size, Western Europe, 2017
Figure 11: Fixed service retail revenue and connections for SMEs, Western Europe, 2013-2022
Figure 12: Percentage of SME fixed broadband connections by type of connection, Western Europe, 2013-2022
Figure 13: Percentage of SME dedicated connections by connection speed, Western Europe, 2013-2022
Figure 14: Percentages of other business services retail revenue in 2012 and 2017 and total business sites in 2017 by enterprise size, Western Europe
Figure 14: Percentages of other business services retail revenue in 2012 and 2017 and total business sites in 2017 by enterprise size, Western Europe
Figure 15: Retail revenue from SMEs' other business services by service type, Western Europe, 2013-2022
Figure 16: Retail revenue from other business services and CSPs' share, Western Europe, 2022
Figure 17: Retail revenue from SMEs by service type, France, 2013-2022
Figure 18: Connections for SMEs and CAGRs by type of connection, France, 2017-2022
Figure 19: Percentages of retail revenue, total employees and total enterprises by enterprise size, France, 2017
Figure 20: Retail revenue from SMEs by service type, Germany, 2013-2022
Figure 21: Connections for SMEs and CAGRs by type of connection, Germany, 2017-2022
Figure 22: Percentages of retail revenue, total employees and total enterprises by enterprise size, Germany, 2017
Figure 23: Retail revenue from SMEs by service type, Italy, 2013-2022
Figure 24: Connections for SMEs and CAGRs by type of connection, Italy, 2017-2022
Figure 25: Percentages of retail revenue, total employees and total enterprises by enterprise size, Italy, 2017
Figure 26: Retail revenue from SMEs by service type, Spain, 2013-2022
Figure 27: Connections for SMEs and CAGRs by type of connection, Spain, 2017-2022
Figure 28: Percentages of retail revenue, total employees and total enterprises by enterprise size, Spain, 2017
Figure 29: Retail revenue from SMEs by service type, Sweden, 2013-2022
Figure 30: Connections for SMEs and CAGRs by type of connection, Sweden, 2017-2022
Figure 31: Percentages of retail revenue, total employees and total enterprises by enterprise size, Sweden, 2017
Figure 32: Retail revenue from SMEs by service type, UK, 2013-2022
Figure 33: Connections for SMEs and CAGRs by type of connection, UK, 2017-2022
Figure 34: Percentages of retail revenue, total employees and total enterprises by enterprise size, UK, 2017
Figure 35: Percentage of total SMEs, employees and business sites by enterprise size, Western Europe, 2017
Figure 36: Diagram of the forecast modelling approach
Figure 37: Definitions and key drivers for mobile services
Figure 38: Definitions and key drivers for fixed services
Figure 39: Definitions and key drivers for other business services
Figure 40: Regional breakdown used in this report

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