• Mobile subscriptions and revenue will stage a strong recovery in 2021, reflecting the critical nature of connectivity during the pandemic.

• The US-China trade dispute will threaten the survival of Chinese tech firms and complicate 5G rollout plans in many global markets.

• Enterprise cloud and edge infrastructure investment will take off as companies look to insulate themselves against pandemic-related shocks.

Mobile subscriptions will recover strongly—by 3.4%—in 2021, from a fall of just over 2% in 2020, according to our new report “Industries in 2021.” Mobile revenue will also increase, as consumers continue to rely on connectivity for everything from business to shopping and entertainment. Growth will be strongest in Asia and the Middle East.

However, the picture is not all rosy. The sector faces substantial risks, including the US-China tech dispute. US sanctions on Chinese tech companies, such as Huawei, could threaten their future survival and delay 5G rollout across many countries that rely on Chinese technology. A new spate of lockdowns, meanwhile, could affect telecoms supply chains, raising prices and delaying shipments, product launches and 5G rollout plans.

“The telecoms and technology sector will stage a recovery in 2021, but with so much uncertainty around, operators will have to prioritise investment that supports the increasing demand for data and protects network performance. Although governments and companies are keen to roll out 5G, they will have to make some tough choices in 2021 given the problems surrounding Huawei. “

MATT KENDALL, PRINCIPAL ANALYST FOR TELECOMS & TECH AT THE ECONOMIST INTELLIGENCE UNIT

The shift in consumer habits during the pandemic will also present new opportunities, however. The popularity of online shopping and mobile gaming will help drive take-up of cloud and edge infrastructure. Digital investments are also becoming a priority for many companies, as they need to sustain the shift to remote working.

Download the full report “Industries in 2021“