German digital association sees slowing growth in 2017

New Work SE

18/10/2016 09:29

FRANKFURT, Oct 18 (Reuters) - 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  SAPG.DE , Deutsche Telekom 
 DTEGn.DE  and United Internet  UTDI.DE . 
    "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 
Deutschland  O2Dn.DE . 
    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) 
 ((georgina.prodhan@thomsonreuters.com; +49 69 7565 1279; 
Reuters Messaging: 
georgina.prodhan.thomsonreuters.com@reuters.net)) 
 
Keywords: GERMANY DIGITAL/FORECAST