4G and NBN rollouts drive ICT spending: IDC

Analyses ICT spending in the Australian communications and media sector

The NBN and 4G rollouts in Australia are driving ICT spending within the communications and media sector, according to analyst firm, IDC.

In its recent report, Australia Communications and Media ICT Market 2012 - 2016 Forecast and Analysis , IDC stated that the ICT spend within the communications and media sector is expected to reach $5.76 billion in 2013, increase to $6.61 billion in 2016.

It represents a compound annual growth rate (CAGR) of 4.4 per cent for the forecast period.

IDC said the NBN and 4G rollout will not only improve user experience of consumed Internet-based content such as IPTV, VoIP, native apps and social networks from fixed and mobile Internet access but also allow new applications like telepresence robotic surgery and 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,” IDC Australian vertical market analyst, David So, said.

He suggested media firms capitalise on viewers' social and interest graphs to generate advertising revenue.

The report also showed that IT services accounts for the majority of communications and media sector ICT spending in 2012 – totalling $2.72 billion, or 49.5 per cent.

"We believe the growth in the 'second screen' will encourage media companies to spend in IT services and with the end-users of the second screen driving spending on communications and hardware," So said.

IDC also highlighted that the communications and media sector is constantly disrupted by emerging technologies, convergence and a changing competitive landscape.

"The engagement of the social TV by people interacting with their devices 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," So added.

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