IDC Australia: 4G and NBN Rollouts to Drive Expansionary ICT Spending in the Australian Communications and Media Sector
18 Feb 2013
Sydney, Australia, February 19, 2013. IDC released a report on 'Australia Communications and Media ICT Market 2012 - 2016 Forecast and Analysis', which details IDC's analysis of ICT spending of the communications and media vertical of the Australian ICT market. According to the report, ICT spending within the communications and media sector is expected to reach A$5,760.5 million in 2013, increasing to A$6,613.5 million in 2016 and representing a compound annual growth rate (CAGR) of 4.4% for the forecast period.
In IDC's opinion, the NBN and 4G rollout in Australia will not only improve user experience of consumed internet-based content (e,g. IPTV, VoIP, native apps, social networks) from fixed and mobile internet access but also will allow new applications (e.g. telepresence robotic surgery, massive open online courses) to emerge due to the lower network latency and faster broadband speeds. "Apart from the NBN and 4G rollouts that are driving expansionary spending on cloud and mobility, we believe investments in social applications and Big Data analytics are essential for media companies to support top-line growth. By capitalising on the viewers' social and interest graphs, media firms can generate advertising revenue more efficiently and effectively." says David So, Australian Vertical Market analyst for IDC.
Based on the findings, IT services accounts for the majority of communications and media sector ICT spending in 2012 - totalling $2,720.1 million, or 49.5%. "We believe the growth in the 'second screen' will encourage media companies to spend in IT services (e.g. customised iOS/Android applications to support interactive and social TV) and software (e.g. enterprise collaboration tools for work) with the viewers/end-users of the second screen driving spending on communications (e.g. 4G) and hardware (e.g. tablets)." Mr So commented.
IDC noted that the communications and media sector is one that is constantly disrupted by emerging technologies, convergence and a changing competitive landscape. "Also, the consumption habits are changing in accordance with the production and distribution of content. Namely, the engagement of the social TV by people interacting with their devices (e.g. tablets, smartphones) while watching television is growing rapidly due to social media and applications. As such, these industry changes present vast amounts of emerging business opportunities for ICT vendors." David added.
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com or www.idc.com.au.
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