Global provider of market intelligence and advisory services for information technology, International Data Corporation, IDC, has projected that telecom spending is expected to decline by 0.8 percent in 2020 worldwide when compared to 0.5 per cent growth last year.
According to the company’s March 2020 finding, “Carriers will continue to invest in 5G network deployments in many countries, while the lock down has increased demand for fixed broadband services in the short term.
“The economic slowdown is expected to put ‘macro pressure’ on consumer spending, including upgrades to 5G mobile contracts, in the second half of 2020, yet the overall impact on telecom spending will be moderate compared to other ICT markets.
“The IT infrastructure spending is projected to grow by an estimated 4% to $437 billion in the wake of spending by service providers for resiliency, in addition to increasing enterprise demand for cloud services. Whereas, the ICT spending, which includes telecom and business services, will decline by 3.4% this year to just over $4 trillion with telecom spending down 0.8%,” the company explained.
According to the company’s March 2020 finding, “Carriers will continue to invest in 5G network deployments in many countries, while the lock down has increased demand for fixed broadband services in the short term.
“The economic slowdown is expected to put ‘macro pressure’ on consumer spending, including upgrades to 5G mobile contracts, in the second half of 2020, yet the overall impact on telecom spending will be moderate compared to other ICT markets.
“The IT infrastructure spending is projected to grow by an estimated 4% to $437 billion in the wake of spending by service providers for resiliency, in addition to increasing enterprise demand for cloud services. Whereas, the ICT spending, which includes telecom and business services, will decline by 3.4% this year to just over $4 trillion with telecom spending down 0.8%,” the company explained.