Telecom spending to reach $923.91 bln in 2008

Total communications spending is projected to increase 5.4% to $923.91 bln in 2008, as strong gains in the institutional and alternative media sectors offset the downward pressure of declining traditional advertising spending, according to Veronis Suhler Stevenson. The industry’s primary growth driver in 2008 is the institutional sector, particularly professional & business information services and education & training media. Institutional media spending is expected to increase 8.5% to $245.39 bln in 2008. Total spending on communications will continue to outpace U.S. economic growth during the 2007-2012 period, increasing at a 6.2% CAGR compared with a 5.6% CAGR for nominal GDP. Communications will be the second-fastest growing of the 15 U.S. economic sectors during the forecast period and will exceed $1 trln in 2010, with spending reaching $1.183 trln in 2012, according to the VSS Forecast.