Tough Economic Times Bring New Opportunities to CEE Communications Companies, According to IDC

Communications companies in Central and Eastern Europe (CEE) are reevaluating their business plans, due to the global economic crisis. According to data from IDC, changes now occurring with regard to consolidation, government spending, and technology migration will make it easier for companies to weather the economic downturn.

"The current global downturn will speed growth in data demand, as cuts in travel and entertainment budgets increase the amount of video and IP voice traffic," says Andy Hicks, Senior Research Analyst, Telecommunications, IDC CEMA. "Most service providers will compensate by running their networks at higher capacity, leaving less room for peaks in usage. This should lead to a upturn in network upgrades once the recovery begins."

Despite widespread uncertainty about the health of the financial system, the duration of the downturn, and the resulting budget cuts, delays in purchasing, and drops in earnings, IDC expects that companies with strong balance sheets and/or good credit ratings will be able to put their capital to work by viewing the crisis as an opportunity.

"The downturn provides an opportunity to sell new tools, as long as they help customers with operating expenditures," says Hicks. "Collaboration tools, telepresence, and anything else that increases productivity while replacing expensive services like business travel will find demand - as long as the case for ROI is convincing."

Resiliency in the new economic landscape will require adjustments in the way companies handle managed services, handset sales, mobile and broadband services, and the many facets of cloud computing, according to IDC.

IDC"s Central and Eastern Europe Top 10 Communications Predictions, 2009 (IDC #CEMA13505) provides a detailed overview of the top 10 factors IDC believes will affect the CEE communications market in 2009. The report explores major trends affecting these factors, and offers specific predictions for each.

For more information on IDC"s communications markets research in Central and Eastern Europe, Middle East and Africa, please contact John Gole (jgole@idc.com, Tel: +420 221 423 140) or Tatiana Hinova (thinova@idc.com, +420 221 423 140).

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment communities make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives.

IDC CEMA

To cover Central and Eastern Europe, the Middle East, and Africa, IDC employs over 140 analysts in a coordinated network of offices in 20 countries, with regional research centers in Prague, Moscow, Dubai, and Istanbul. Customers include a wide range of ICT hardware, software, and services suppliers, governments, and members of the financial community.

IDC is a subsidiary of IDG, the world"s leading technology media, research, and events company.