Abstract
This IDC study presents the dynamics and development trends of the telecom
industry in 2007. First, it analyses the status quo of the telecom industry in
2007, the changes of macropolicy, and the challenges and opportunities of the
industry. Second, it analyzes the current status of the telecom IT market and
application solutions in 2007, including market size, IT maturity-level change,
application highlight, user demand, relationship between the existing industry
status and IT investment. Third, it presents further a detailed analysis of
solution providers in the telecom industry, including the market concentration
analysis, solution providers' market position, and overview of the top 10
solution providers in 2007. Fourth, the study describes the outlook of the
telecom industry, including the prospect and forecast of the industry' s
developing trend, the IT market trend, and forecast for the next five years, as
well as the market trend of various solutions and forecast for the next five
years. Finally, it draws a conclusion and puts forward some suggestions.
"The overall IT spending in China' s telecom industry was estimated at RMB
30.502 billion (US$4 billion) in 2007, an increase of 13.2% compared with 2006.
Telecom fixed-asset investments presented resuming growth as operators continue
to make preparations for 3G implementation, which was in full operation in
2007. Hence, IT spending in the industry posed significant growth in 2007
compared with 2006. Although 3G licenses were not issued in 2007, China Mobile,
China Unicom, China Telecom, and China Netcom all made preparations for 3G
implementation and had invested in relevant IT system software and hardware.
IDC forecasts that by 2012, the overall telecom IT market will be able to reach
RMB 51.743 billion (US$6.790 billion). By then, the share of software in total
IT spending will increase to 14.5% and that of service will increase to 35.3%;
while the share of hardware including IT hardware and network equipment will
fall from 57.2% in 2007 to 50.2% in 2012. IDC forecasts that the 2007 telecom
IT application solution market (the proprietary software and related service of
solution providers only) was estimated at RMB 9.727 billion (US$1.277
billion), accounting for 74.5% of the overall telecom IT software and service
market and with 2007-2012 CAGR of 11.1%. IDC foresees the telecom IT solution
market to reach RMB 19.349 billion (US$2.359 billion) by 2012, with a
2007-2012 CAGR calculated at 14.7%," says Stephen Gao, senior research analyst,
Vertical Industry Research and Consulting, IDC China.
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