Telecom
Smartphones, Software Leading Global IT Market Spending
According to the newly published International Data Corporation (IDC) Worldwide Black Book, recent volatility will gradually give way to a more positive outlook for IT spending in the second half of 2014.
The report contains that with the U.S. and other mature economies mostly heading in the right direction and a significant commercial PC refresh cycle already underway, improvements in business confidence are set to drive a moderate infrastructure upgrade cycle over the next 12-18 months, while investments in software and services will continue to accelerate.
Worldwide IT spending is now forecast to increase by 4.5% in 2014 at constant currency, or 4.1% in U.S. dollars.
A significant proportion of this growth is still being driven by smartphones, as IT spending excluding mobile phones will increase by just 3.1% this year in constant currency (2.8% in U.S. dollars).
Aside from smartphones, the strongest growth will come from software, including rapidly expanding markets such as data analytics, data management, and collaborative applications including enterprise social networks.
The 3rd platform pillars of Big Data, Social, Mobile and Cloud will continue to drive virtually all of the growth in IT spending, while spending on 2nd pPlatform technologies will remain effectively flat.
Meanwhile, although some emerging markets remain constrained by macroeconomic and geopolitical wild cards, there is now significant pent-up demand for IT investment that will drive stronger growth next year in markets including India, Brazil, and Russia.
Pent-up demand has already driven a significant rebound in both consumer and enterprise IT spending in China this year, as confidence stabilizes.
While mature economies are still driving the upside in 2014, emerging markets will once again dominate in 2015.
IDC said that Cold snap and wild cards impacted it spending, but underlying demand is strong
Some IT market segments performed weaker than expected in the first quarter of 2014 (1Q14), in line with the weather-related slowdown in U.S. output and the impact of wild card events including the conflict in Ukraine.
In particular, an overdue enterprise infrastructure refresh cycle was disrupted by short-term declines in business confidence.
However, strong underlying demand for this investment cycle will drive improvements in the server, storage, and network infrastructure markets in the coming months.
“At the beginning of 2014, we asserted that businesses would choose to fix the roof while the sun was shining,” said Stephen Minton, vice president in IDC’s Global Technology & Industry Research Organization (GTIRO).
Minton added that, “Unfortunately, the weather was literally much colder than expected during the first quarter. The good news is that the U.S. economic outlook has already brightened and this will drive a period of moderate but long-awaited investment in mission-critical infrastructure over the next year.
However, accelerating adoption of cloud services will continue to impact sales of traditional on-premise equipment, packaged software, and IT services. This capital spending cycle will be mild by historical standards.”
Meanwhile, PC refresh stronger than expected in mature economies, tablet shipments weaker
The commercial PC refresh has proven stronger than originally forecast.
As a result, IDC now forecasts PC spending will increase by 3.5% in 2014 (the fastest pace since the post-financial crisis rebound of 2010).
Western Europe has also seen an improvement in PC shipments, although PC spending in Europe will still be down by 1% due to average price declines.
The PC cycle has already driven a market upturn in Japan, where economic growth and upcoming tax increases drove a surge in capital spending in 2013 (PC spending in Japan increased by 6% last year, but will decline by -4.5% this year).
“The end of support for Windows XP is obviously part of the story, but there has also been a transition of some spending from tablets to PCs as consumers and businesses have allocated disposable income and IT budget to replacing older notebooks and desktops rather than upgrading their relatively new tablets.
“The tablet market is also more sensitive to economic wild cards and price competition, now that penetration rates have increased. There’s still plenty of growth ahead for tablets, however, and it would be premature to say that improvements in the consumer PC market represent anything like a reversal of the long-term shift to tablets and hybrids over the long term,” said Minton.
The U.S. tablet market is now forecast to increase by just 2% this year, but will rebound to 7% growth in 2015 as the PC cycle begins to wane.
Worldwide tablet spending has slowed from 29% year-over-year growth last year to 8% in 2014, but will accelerate back to double-digit growth next year (10%).
Penetration rates in emerging markets such as China will continue to increase, while some enterprise spending will shift back to tablets.
Pent-up demand and mobile driving growth in china, with other emerging markets to follow
The economic slowdown in 2013 had a negative impact on IT spending in China, but this also created a significant swell of pent-up demand that is now driving improvements in technology investment. IT spending growth in China decelerated to 8% last year but is on course for 13% growth in constant currency in 2014.
According to Minton, “Smartphones are a large factor in China’s growth as Chinese manufacturers have successfully expanded the customer base with new, price-competitive products that have driven overall volume. But while smartphones are a big part of the story, there has also been a significant upturn in business spending on infrastructure and software.”
Excluding mobile phones, IT spending in China will increase by 5% this year (up from growth of just 2%, excluding phones, in 2013).
Server spending in China will increase by 7% (compared to 0% in 2013), storage spending by 8% (up from 1.5% in 2013), and software by 9% (up from 7% last year), but overall market growth is still weighed down by the declining PC market.
Other emerging markets are likely to improve over the next 12 months as business confidence stabilizes.
IT spending in India will increase by 15% next year, up from 8% in 2014. In Brazil, the market will accelerate from 10% growth this year to 13% next year. In Russia, where the crisis in Ukraine has damaged business and investor confidence since the beginning of the year, the market is set to decline slightly in 2014 before rebounding to 7% growth in 2015.
Mature economies have remained more stable since last year, with market growth often outpacing expectations.
The U.S. IT market will increase by 4% this year, and Western Europe will maintain a 2% growth rate overall. Total worldwide IT spending will reach almost $2.1 trillion in 2014.
Including telecommunications services, the worldwide ICT market will increase by 4% to $3.7 trillion, with telecom services growth of 4% driven by mobile data services and increasing broadband penetration.
IDC’s Worldwide Black Book provides forecasts for IT spending in 54 countries around the world.
IT spending forecasts focus on 25 individual market segments across hardware, software, IT services, and telecom services for individual countries in all regions including North America, Latin America, Western Europe, Eastern Europe, Asia/Pacific, the Middle East, and Africa.
The Worldwide Black Book Query Tool presents all data in the following exchange rate views: U.S. dollars in constant currency, annual and year-to-date exchange rates, and local currency.
Additional products in this category include the Worldwide Enterprise Black Book, which analyses annual IT spending in relation to four company size segments based on employee counts.
The Worldwide Black Book, Premium Edition, includes cloud spending forecasts, quarterly IT spending forecasts by region, IT vendor market share analysis, macroeconomic indicators, IT/Internet penetration, and CIO survey data.
The United States Black Book: State IT Spending by Vertical Market is a quarterly analysis of the status and projected growth of the IT industry in 50 states and across 15 vertical markets.
Nigerian Communications Commission (NCC) has introduced strict corporate governance rules that will bar its top officials from taking up roles in telecom companies they regulate until five years after leaving office.
Under the new Corporate Governance Guidelines for the Communications Industry, the Chairman, Executive Vice-Chairman, and Board Commissioners, both executive and non-executive, are barred from being appointed to any position in a licensed telecom company until five years after their exit from the Commission.
Similarly, Directors of Departments at the NCC face a three-year cooling-off period before they can take jobs with any licensee under the Commission’s supervision.
The move, announced on August 11, 2025, seeks to enhance transparency, accountability, and ethical standards in Nigeria’s fast-growing telecommunications industry.
Departmental directors face a three-year cooling-off period before joining any licensee under the agency’s oversight.
This policy aims to prevent conflicts of interest and ensure impartial regulation.
By creating a clear separation between regulators and the industry, the NCC hopes to curb undue influence and maintain public trust.
]The guidelines reflect a global trend in regulatory bodies enforcing cooling-off periods.
Similar measures exist in industries like finance and energy to safeguard against regulatory capture.
For Nigeria’s telecom sector, this is a significant step toward aligning with international best practices.
The NCC’s new framework also targets telecom operators’ internal governance.
Board chairmen or vice-chairmen are barred from holding executive powers or serving as MD/CEO of a licensee.
Former board chairmen and non-executive directors must wait five years before assuming executive roles in the same company or its affiliates.
Additionally, no more than two family members can serve on a licensee’s board simultaneously.
These measures aim to promote balanced board structures and reduce nepotism.
Dr Aminu Maida, executive vice-chairman, NCC, emphasised the importance of these reforms.
“Corporate governance is no longer a soft requirement. It is now a strategic imperative,” he said during the guidelines’ launch in Lagos.
Maida highlighted that robust governance correlates with better business performance, citing an NCC internal review. Companies with strong governance frameworks consistently outperform peers in service delivery, financial management, and regulatory compliance.
Nigeria’s telecom sector is a cornerstone of its digital economy. With over 222 million active mobile subscriptions as of Q1 2025, the industry supports critical sectors like finance, healthcare, and education.
However, challenges like cybersecurity threats, energy shocks, and rising consumer demands have exposed governance weaknesses. The NCC’s new rules aim to address these by fostering transparency, accountability, and innovation.
The guidelines apply to all communications companies holding individual licences and paying Annual Operating Levies (AOL) under the AOL Regulations 2022.
The NCC has indicated flexibility in applying the rules across different licence categories, with phased compliance measures to be communicated in writing. While the rules may cause short-term disruptions for operators, the NCC insists that long-term benefits, like improved service quality and market trust, will outweigh these challenges.
Airtel Africa and Vodacom Group have announced a strategic infrastructure sharing agreement in key markets including Mozambique, Tanzania and the Democratic Republic of Congo (DRC), subject to regulatory approvals in the various countries.
The agreement marks a transformative milestone in promoting digital inclusion and expanding access to reliable connectivity across Africa.
The initial partnership focuses on sharing fibre networks and tower infrastructure, to accelerate the roll-out of digital services in these markets, increasing connectivity for customers while reducing operators’ infrastructure costs and improving speed to market.
By leveraging existing infrastructure, the collaboration aims to deliver improved connectivity, faster internet speeds, and more reliable services. This will not only enhance customer experience but also assist with providing access to digital services for a broader population, particularly those in underserved areas, helping to bridge the digital divide in Africa.
Vodacom Group’s chief executive officer Shameel Joosub said: “Providing connectivity to empower people is at the core of our strategy. Our partnership with Airtel Africa is a proactive step forward in creating a sustainable, inclusive, and connected digital future for the continent.
Through infrastructure sharing, we can provide cost-effective services to more people, more rapidly, ensuring that no one is left behind in the digital age. As we fulfil our ambition to connect 260 million customers by 2030, the need for scalable and cost-efficient network solutions becomes increasingly significant.
This partnership provides us with the opportunity to narrow the digital divide, empowering more individuals and communities through digitalisation across the continent. It is aligned with our purpose to connect for a better future,” concludes Joosub.
Airtel Africa’s chief executive officer Sunil Taldar said: “This partnership is aligned with our unwavering commitment to delighting our customers by always making our network available to them even in the remotest locations.
“Working with Vodacom, we will open greater access to digital and financial opportunities which will transform the lives of our customers while complying with all regulatory requirements.
“Even as competitors, it has become a business imperative for us to collaborate in the provision of critical infrastructure required to build resilient network with strong capacity to support the emerging digital technologies as well as the growing need for data-enabled products and services.
“Accelerating the deployment of fibre connectivity is a key enabler in the acceleration of 4G and 5G technologies in Africa to deliver the high-speed, low-latency, and reliable connections needed for modern digital applications.
“This partnership allows for further opportunities for both operators to enhance network performance, extend coverage, and increase mobile, fixed, and financial services leveraging a broader footprint on the continent.”
Truecaller, a global caller ID and spam prevention platform, has reached 100 million active users in the Middle East and Africa (MEA) region, representing a 19% year-over-year increase.
According to the platform, the region’s main markets include Egypt, Nigeria, South Africa, Kenya, Algeria, Ghana, and Jordan.
Truecaller is routinely utilised on 20% to 45% of connected cellphones in these areas, including Android and iOS devices, according to the business.
The app has gained traction across the African continent with its concept of resolving communication issues for individuals and businesses by blocking unsolicited calls.
It has also collaborated with local businesses, forming major partnerships including a recent cooperation with Telecom Egypt to change consumer communication and experience by providing safe, customised, and seamless calling experiences.
Truecaller’s CEO, Rishit Jhunjhunwala, stated that the service has grown organically in markets such as MEA and India due to the mobile first environment, which uses a user’s mobile number as the primary identifier of calls. He under-lined that the MEA market provides a growth-enabling environment.
“We’re continuing to strengthen our organisation and our partnerships in the region, because we believe that the MEA is poised for significant growth for many years ahead,” said Jhunjhunwala.
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