Asia in line for telecoms boom

Third generation phones will drive the sector's expansion

The telecoms services market and the information technology market is set for rapid growth in the Asia Pacific region, excluding Japan, this year.

The telecoms services market is forecast to grow 21% to $161bn (£110.6bn; 180.2 euros) during 2002, researchers at International Data Corp said.

And the telecoms sector will get a further boost in the following two years, thanks to the roll out of broadband internet services and third generation mobile phone networks.

"By 2005, this market will be worth around $269bn, growing at a compound annual growth rate of 19% between 2001 and 2005," the report predicted.

Chinese boost

The IT market is also in line for healthy growth of 13.5%, taking the total value of the market to $76bn, International Data said.

China can, following entry into the World Trade Organisation, expect especially strong growth in the IT sector.

The Chinese IT market is expected to grow by 25% to $25.6bn next year, and to have reached twice this level by 2005.

But the report also warned that the 11 September attacks on the US will redefine the development of IT in the Asia Pacific region.

The travel, transport, tourism and insurance industries have all been hit, changing the IT demands from these sectors.