EE 566EE 566The Information andTelecommunication

s Industry

Ying-Chang Huang

2964-7696

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 jobsamong 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 1995.

The number of jobs has dropped from almost 40,000 employees in 1995 to 22,247 in 2002. 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 devicesNumber 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 1999-2000 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 servicesNumber 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!!!Thank you!!!