Shagun Bali, analyst for telecoms technology at Ovum and author of the report.
Photo: Ovum

[Via Satellite 09-25-13]  Global analysis firm Ovum estimates that telco IT spending will reach $60 billion in 2017, growing at a CAGR of 0.6 percent between 2013 and 2017, as stated in a recent market forecast analysis report. The firm foresees growth in telco IT spending will be driven primarily by investments in packaged software and system integration.

Spending in emerging markets in Asia-Pacific, the Middle East and Africa and South and Central America will drive global IT spending, according to the report. In North America, telco IT spending is expected to grow modestly at a CAGR of 0.8 percent to reach $17.5 billion by 2017.

Overall, Ovum says the global telecoms industry’s revenues will remain roughly flat over the next few years, with a decline in spending on voice services counterbalanced by growth in spending on mobile and fixed (broadband) data services. The firm found that as growth slows, market realities mean telcos must find ways to serve their existing customers profitability rather than simply growing their customer bases.