The 3Q03 Telecom Black Book shows that data services growth will be 16% in 2004, while telco spending on equipment will show a long-awaited recovery to 7% growth in 2004 and 11% in 2005. "The telecom industry will finally return to increased equipment spending in 2004," said Ludovica Bruno, telecom analyst at IDC. "As the telecom winter gives way to a telecom spring, the rebound will reach 16.5% growth by 2007." International markets, meanwhile, continue to offer improving prospects and stability. "Latin America will see a recovery to 7% IT spending growth in 2004," said Juan Orozco, IT market analyst. "This will include a rebound to double-digit growth in IT services markets next year."
Worldwide IT spending is set for 5% growth to $916 billion in 2004, while spending on telecom services will show 4% growth to $1 trillion. According to the new IT Black Book, which gathers IT spending data from 55 countries, total spending in 2003 will show a return to positive growth this year in the United States and emerging markets, although worldwide growth will remain inhibited by declines in Europe, Japan and Canada.