IT and broadband industries could enjoy more lucrative future

A recent report has suggested that the effects of the recession may be slowing down for areas such as broadband services and ICT, which officials have claimed could be on the way to recovery.

Like many other services and industries, the ICT and broadband sector has suffered during the ongoing recession, as consumer spending has gone down due to families attempting to cut back on their spending and outgoings. However, one recent report has suggested that the broadband and ICT sectors could be on the road to recovery.

The report was released recently by the Organisation for Economic Co-operation and Development (OECD). The OECD compared the ongoing economic crisis to the dot com bust seen in the 1990s in order to reach its conclusion. It also stated that the impending recovery in these markets was partly due to the various stimulus packages and measures that the government has taken.

The broadband for all project, which forms part of the Digital Britain programme, was one of the things attributed to faster recovery in these sectors, and this is where the government has promised universal broadband access across Britain with minimum speeds of 2Mbps. The recovery comes after a prolonged period of difficulty for this industry, with one OECD official stating: “Internet and software firms saw steep falls in growth of over 20 percentage points in the last four quarters, in sharp contrast with their recent performance.”

A number of broadband providers in the UK have seen revenue fall since the onset of the recession, with consumers cutting back on services and often downgrading to cheaper broadband packages in order to keep costs low. This has resulted in many of the UK’s broadband providers reducing prices and offering a range of incentives in order to be more competitive and to try and increase custom.

Source – computer world uk