Telecom industry IT spend to touch $60bn
London, September 25, 2013
The global telecom industry’s IT spending will reach $60 billion in 2017, driven by investments in packaged software and system integration, according to analyst firm Ovum.
Spending in emerging markets in Asia-Pacific, the Middle East and Africa and South and Central America will drive global It spending, it said.
Revenues, however, will remain roughly flat over the next few years, with a decline in spending on voice services counter-balanced by growth in spending on mobile and fixed (broadband) data services, said the firm.
In a recent market forecast analysis report, it was found that as growth slows, telecom companies must find ways to serve their existing customers profitability rather than simply growing their customer bases.
Shagun Bali, analyst for Telecoms Technology at Ovum and author of the report, said: “Over the next five years, service and tariff innovation will be key revenue-generating strategies, while LTE rollout, network optimisation, and creative approaches to partnerships will become focal points for cost savings.
“Telcos need to monetise new business models, leverage customer data by investing in analytics, and define their response to over-the-top (OTT) players.”
“Although overall telco IT spending will grow modestly, the trend is for them to reduce internal IT spending and increase spending on external IT projects,” he said.
“The combination of middling profits, high capital requirements, high risk, and uncertain economic growth requires telcos to place their bets carefully, including investing in growing revenue streams and managing customer experience more than ever before. The result is increased opportunities for the IT industry. In the long term, telcos will place more focus than they have before on software to drive innovation,” concluded Bali. - TradeArabia News Service