VietNamNet Bridge – Despite economic difficulties, spending on information technology (IT) and telecom services is expected to soar next year with market value hitting over US$13 billion, according to market survey company IDC.

A customer scrutinizes IT devices at a shop in HCMC. Spending for ICT products is expected to rise strongly next year.

The development of cloud computing, metadata, mobile services and social networks will prompt solution providers and enterprises to upgrade their IT infrastructure.

Therefore, expenditure on IT and telecom services will accelerate next year.

IDC said that IT and telecom spending will rise by 15.5% in 2014 and the market value will reach over US$13 billion. Meanwhile, spending in the sector only grows 8.4% this year.

If the estimation comes true, Vietnam will be listed among countries in the Asia-Pacific with big spending on IT and telecom.

Ha Ngoc Khuong, a researcher at IDC, said that economic woes will remain but enterprises will boost investment in information and telecommunication technology (ICT) to improve their competitiveness. In addition, many enterprises have shifted to IT-based corporate administration.

IDC also estimated that the mobile game market would surge strongly next year as Decree No. 72 takes effect, creating specific legal framework for online and mobile game development. The number of mobile game players is expected to reach nearly 2.7 million late this year and the figure will surge by 39.1% in 2014.

However, the mobile game market still faces challenges due to third generation (3G) fee hikes and technical limitations of application providers.

The computer market will keep developing as the demand still increases 21% a year. The demand will remain strong next year, especially from urban areas and newly-established enterprises.

Therefore, IDC said that computer imports would increase by 3% next year.

Concerning the telecom sector, given rising data exchange demand and pressure on the 3G network, mobile operators have to make use of 2G band for 3G development.

Telecom firms Viettel, MobiFone and VinaPhone have recently asked for permission from the Ministry of Information and Communications to use 2G infrastructure for 3G networks next year.

Notably, IDC said that telecom service providers would have to cooperate with over-the-top (OTT) application providers next year.

As free call and message services have become popular, telecom firms have seen their revenues slumping. They have no choice but to join hands with OTT enterprises such as Line, Viber, Kakao or Zalo to benefit all parties involved, IDC said.

Source: SGT