China Telecom Industry IT Solution 2009-2013 Forecast and Analysis

This IDC study presents the dynamics and development trends of the IT solution market of the telecom industry in 2008. First, it analyses the status quo of the telecom industry in 2008, the changes in macropolicy, industry size and structural changes, as well as sales and profit, and the challenges and opportunities facing the industry. Second, it analyzes the current status of the telecom IT market and application solutions in 2008, including market size, changes in IT maturity level, application highlights, user demand, and the relationship between the existing industry status and IT investment. Third, it presents further a detailed analysis of solution providers in the telecom industry, including a market concentration analysis, solution providers' market position, and the profile of the top 10 solution providers in 2008. Fourth, the study describes the outlook of the telecom industry, including the prospects and forecast for the industry's development trends, IT market trends, and forecasts for the next five years, as well as the market trend for various solutions and forecasts for the next five years. Finally, it draws a conclusion and puts forward some suggestions.

"Overall IT spending in China's telecom industry was estimated at US$4.69 billion in 2008, an increase of 7.4% compared with the figure for 2007. The slowdown in IT spending in 2008 as compared with 2007 was mainly caused by delays to new business system development projects during the reorganization of telecom operators, and was also influenced by spending cuts before the Beijing Olympics as well as 3G pilot trials. IDC forecasts that by 2013, the overall telecom IT market may reach a size of US$7.76 billion. By then, the share of software in total IT spending will increase to 14.2% and that of services will increase to 42.0%; while the share of hardware including IT hardware and network equipment will fall from 55.3% in 2008 to 43.8% in 2013. IDC forecasts that the 2008 telecom IT application solution market (only including solution providers' proprietary software and related services) was estimated at US$1.34 billion, accounting for 63.9% of the overall telecom IT software and service market, with an estimated 2008-2013 compound annual growth rate (CAGR) of 10.6%. IDC forecasts that the telecom IT solutions market will reach a size of US$2.70 billion by 2013," says Stephen Gao, Senior Research Analyst, Vertical Industry Research and Consulting, IDC China.