IDC sees strong growth in Asia's telecom, IT markets

IDC sees strong growth in Asia's telecom, IT markets

Associated Press, Singapore

The Asia-Pacific region's telecommunications services market will grow by 20.6 percent this year to US$161 billion despite the worldwide economic slowdown, a U.S. market research firm said Wednesday.

Asia's telecom sector will "blossom" as people around the region - including the massive populations of China and India - continue to buy and use mobile phones at a rapidly growing pace, International Data Corp. said in its latest report.

The region's market for information technology, which includes computers, software and related products and services, will grow by 13.5 percent in 2002 to $76 billion, the report said.

The report covers an area from China and South Korea to Australia and India, but excludes Japan. It is based on reports from analysts throughout Asia, IDC said.

The Sept. 11 terrorist attacks in the U.S. and resulting worldwide economic downturn have led to a "reshuffling in demand" for IT products and services, the report said.

But IDC's outlook for Asian IT markets in 2002 is one of "cautious optimism," said the company's Asia-Pacific Managing Director Piyush Singh.

The Asia-Pacific telecoms market will pick up more speed in 2003-2004 with the spread high-speed broadband networks and third-generation, or 3G, technology, the report said.

The much-hyped 3G mobile phone technology, which has taken longer than expected to develop, is supposed to provide better voice service along with faster e-mail, text messaging and Internet surfing.

Other developments predicted in IDC's report include the growth of China's IT market in 2002 by 25 percent to $25.6 billion.

IDC, based in Framingham, Massachusetts, issues regular market research reports on IT, telecoms and related industries.