FRANKFURT Oct 18 Germany's telecommunications
and IT industry association expects slowing growth next year as
a boom in demand for expensive smartphones ends, sales of PCs
and notebooks slow and price competition and regulation dampen
telecom operators' revenues.
Industry revenues are expected to grow 1.2 percent to 162
billion euros ($181 billion) in 2017, industry association
Bitkom said on Tuesday, reiterating its forecast for 1.7 percent
growth in 2016.
Bitkom represents companies employing a total of 1 million
people, more than any other sector in Germany bar engineering.
Major employers include SAP, Deutsche Telekom
and United Internet.
"Considering economic turbulences such as Britain's decision
to leave the European Union or recent concerns about the banking
sector, it is good news that we are able to confirm our
forecasts that we made in spring," said Bitkom President
Thorsten Dirks, who is also chief executive of Telefonica
Software will continue to drive growth, Bitkom said, with
sales up 6.2 percent in 2016.
Network operators - who account for one-third of Bitkom's
total industry sales - are expected to spend 2.1 percent more on
infrastructure next year but make 0.6 percent less in revenue.
($1 = 0.8928 euros)
(Reporting by Georgina Prodhan; Editing by Mark Potter)