Data Services Continue to Drive Worldwide Telecommunications Growth Despite Economic Slowdown, Says IDC

FRAMINGHAM, MA – APRIL 7, 2003 – Worldwide telecommunications revenue growth will be dampened by the economy in the near term, but is expected to gain momentum in 2004-2005 according to a new study from IDC. Significant changes will impact the market during this time, which will grow from $917 billion in 2002 to $1.2 trillion in 2007.


"The next five years will continue to be a dynamic time for the global telecommunications market," said Rena Bhattacharyya, senior research analyst, Worldwide Telecom Markets at IDC. "While voice services will continue to be the mainstay of the market, growth will be driven by data services – both wireline and wireless offerings. Adoption will vary regionally, but wireless LAN and IP-based services in particular will continue to generate strong interest from enterprise customers."

Wireless revenues will make up a growing portion of total telecom revenue on a global basis, as will data services. By 2007, wireless voice will likelybe at its maturity, and wireless data alternatives will have established their claim to the data services sector. IP revenue will also gain ground as IP VPN implementations gain momentum and customers look to better integrate their voice and data networks.

Service providers are already putting in place strategies to capitalize on these changing trends. Integrated voice and data offerings are gaining traction, as is greater attention to customer service and the need to deepen customer relationships by moving up the value chain with managed service offerings.

The IDC study, Worldwide Telecommunications Services Market Forecast and Analysis, 2002-2007 (IDC #29013), provides an overview of the worldwide

telecommunications services market. It includes all telecom service sectors, including wireless and landline revenue, as well as voice and data revenue. The study highlights major global and regional trends, and includes market sizing and forecasts through 2007 for the following geographic regions: the Americas, Europe, Middle East and Africa, and Asia/Pacific.

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About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business

strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver

dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC’s customers comprise the

world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world’s leading IT media, research, and exposition company.


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