Revenue growth is in decline for many telcos, and slowing for those in emerging markets, even though the economic downturn hasn’t resulted in the expected downward pressure on top lines, research has indicated.

A global consumer survey conducted recently by Ovum’s parent company Datamonitor revealed that over a quarter of consumers surveyed indicated that they either would, or consider cutting back on their telecoms spending, with a further 24 per cent undecided. When asked which services they would look to cut back on, over 30 per cent indicated that they would consider downsizing their mobile phone tariff, while 24 per cent saw fixed voice as an area where they could make cuts.

Ovum believes those that prudently managed their finances during the downturn will grow, but should be wary of initiating M&A programs designed solely to grow top-line revenues. Targeted mergers, acquisitions and partnerships that fill key skill-set gaps will be the flavour of telecoms going forward.

Ovum’s principal analyst Clare McCarthy said “While the recession accelerated revenue decline, challenges such as market saturation, increased competition and regulatory intervention on roaming and termination rates won’t disappear just because the economy picks up”.