EE 566 EE 566 The Information and Telecommunication s Industry Ying-Chang Huang

Sector analysis for 2003  2002 – a tough year for the ITC industry  Employment drops in service areas for the first time  The restructuring process continues  Worrisome prospects for 2003

The ITC industry up to the 80s

The ITC industry starting from the 80s

Drastic reduction in jobs among hardware manufacturers  The most important providers in the hardware area are FujitsuSiemens, Sun, IBM, Hewlett- Packard/Compaq and Dell.  The number of jobs at manufacturers of data- processing devices have been in decline since  The number of jobs has dropped from almost 40,000 employees in 1995 to 22,247 in This is a drop of almost 44 percent. example:  4,000 out of 25,000 employees at IBM  1,100 out of 8,200 employees at HP/Compaq  Approximately 450 out of 5,750 employees at FujitsuSiemens

The number of employees hit a historical low in 2002!(14.6% dropped)

Drop 13.1% in 2002

Lower levels of orders in hand

Structure of IT services  Internet/online/data services: T- Online/Deutsche Telekom AG, AOL, Lycos, Mediaways, QSC and GFT  Software: Microsoft, SAP, Oracle, Software AG,Intershop Communications and CA Computer Associates  IT services: CSC Ploenzke, Accenture, EDS, GE Compunet, Lufthansa IT, Thyssen Krupp – Information Services (Xtend AG, Triaton)

 Doubling of jobs up to 2001 in only six years!  This growth cooled considerably for the first time in 2002.(2%)

Stagnating sales at IT service providers and software manufacturers expected in 2003

Much growth down in 2002!

Manufacturers of communications technology 1.Device production (hardware)  The most important providers of infrastructure and end devices are: Nokia, Ericsson, Siemens (cellular radio and network sectors), Lucent, Motorola and Nortel.

Communications devices Number of employees  Rise in employment up until 2000  Eight percent drop in employment in 2002 example: 900 out of 2400 jobs at Ericsson 1800 redundancies have been announced at Siemen- ICN

Communications devices Sales  Meteoric rise in sales until  11.7 drop in sales in 2002

Communications devices Orders in hand  Decline in orders in hand since 2001

Telecommunications services  The most important providers in the fixed network area include:Deutsche Telekom, Arcor, Mobilcom, BT Ignite (Viag Intercom), Colt Telecom and Worldcom.  The most important providers of services or network operators in the cell telephone sector are: T-Mobile, Vodafone, E-Plus, Viag Intercom, Mobilcom and Debitel.

Telecommunications services Number of employees  Three percent drop in employment in 2002 (1800 redundancies have been announced at Mobilcom)

The market for mobile radio communication  Growth in sales has slowed in the mobile communications area

Market for fixed networks  Stagnation to slight decrease in sales in fixed network area

Summary  Decline in employment of about four percent in 2002  Hardest hit: The biggest declines is in hardware  Decline in employment in services in 2002 as well  Over 80 percent, the overwhelming majority of staff the ITC industry are employed in the service sector of the branch.  Forecast: ITC is not very optimistic!

Why ITC go to Down???  Market saturation  “Wintelism” (windows comes out with a new operating system with new programs requiring a computer with a fast processor) is no longer working  The sluggish global economy  Traditional IT hardware manufacturers increasingly penetrating the service market  No new trends in sight

Don’t worry!!!

The Future  Integrated-services digital network (ISDN).  The convergence of the internet  Mobile phones and PCs  Growing options via wireless  Fiber optics  Satellite and DSL  ………..

Thank you!!!