Asia ISP spending peaked at $2.24 bn in 2001: IDC

SINGAPORE: Information technology spending among Asia-Pacific Internet
Service Providers (ISPs) peaked at $2.24 billion in 2001 after robust 41 per
cent year-on-year growth since 1998, according to a recent IDC survey.

But annual growth for the next three years is expected to drop to 32.5 per
cent, the market research firm said.

The survey conducted in Australia, China, Hong Kong, India, Singapore, South
Korea and Taiwan covered technology infrastructure spending in three major
categories -- networking equipment, hardware and software.

"A clear path to profitability and how to convert all those dollars
spent on ramping up their infrastructure rapidly has stalled IT spending among
ISPs in the region," IDC analyst Justin Santiago said in a statement.
"All markets are showing a decline except India and China, which are
spending to build out their basic Internet infrastructure to support increasing
Internet usage."

ISPs have been rolling out infrastructure with less emphasis on revenue
generation and drawing in new users with free access and price cuts. The
unsustainable business model has lead to a drop in IT spending, Santiago said.

(C) Reuters Limited.