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Telecoms – the recovery starts here

$1tn of spending should cheer up Orange, Vodafone et al
Written by Jo Best, Contributor

$1tn of spending should cheer up Orange, Vodafone et al

At least one sector of the tech market is hearing the sound of cash registers ringing as the recovery rumbles on - telecoms.

Analyst firm IDC predicts that the telecoms market will ring up more than $1tn - yes, that's one trillion dollars - of spending in the course of 2004. According to IDC's Worldwide Telecommunication Black Book the sector as a whole will enjoy growth 4.4 per cent greater than in 2003.

The driver for the upturn will, of course, be data services. Instead of the usual MMS and WAP-based offerings, IDC's pinning its predictions on the higher end of the data market - saying that IP-based services, such as broadband web access and IP VPNs, will lead the way. Consumers' hunger for data will see revenues from data services rise by 16 per cent year-on-year and bring in a quarter of all revenues. The upward trend will continue in the coming years, with $375bn to be spent globally this year.

However, the old skool is not to be trifled with. Rena Bhattacharyya, programme manager for world telecoms markets at IDC, said in a statement: "The voice market will continue to be a key part of the industry and will generate more than two-thirds of the industry's revenue throughout the forecast period."

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