For the first time in its 23 years of forecasting for the ICT industry, the US-based Telecommunications Industry Association (TIA) is projecting a 3.1 percent decline in revenue for the overall global ICT market in 2009 due to global economic conditions. According to the association, in the US, revenue will suffer a 5.5 percent decline in 2009.

While revenue will remain weak in 2010, with a modest 1.2 percent increase, the longer-term outlook is much brighter. Globally, TIA projects a strong rebound for the ICT industry after 2010, citing a 6.4 percent revenue growth in 2011 and a 7.9 percent increase in 2012.

“Broadband will be a driver for recovery in all areas, from healthcare IT to smart grid technology, public safety networks to education, as well as for businesses and consumers,” says Grant Seiffert, TIA President.

Further analysis shows that economic recovery during 2011 to 2012 will be driven by pent-up demand for equipment upgrades. Growth in data traffic will strain network capacity and stimulate investment; availability of financing will fuel investment, and broadband growth will expand the platform for VoIP and IPTV.