The information technology (IT) market in France ranks third among Western European nations, trailing only those of the United Kingdom and Germany.  Composed of three major segments—computer hardware, packaged software, and IT services—the French IT market exceeded $48 billion in value during 2001 and accounted for 17 percent of the entire IT market in Western Europe.  IT services, worth $24.9 billion, comprised just over half of the entire French market, while computer hardware ($13.9 billion) and packaged software ($9.7 billion) made up 29% and 20% respectively.

The telecommunications market in France also ranks third in Western Europe behind the United Kingdom and Germany.  This market has been liberalized since 1998 in France. Nevertheless, the incumbent national operator, France Télécom, still constitutes a dominant force in the area of telecommunications. In 1999, telecommunications represented 2.3 percent of the entire French GDP. By 2001, that number rose to 3.2 percent of French GDP, valued at $40 billion ($29 billion in services, $11 billion in equipment).Of the $29 billion market value of telecommunications services, wireline services comprised 52 percent, followed by wireless services (32 percent), followed by switched data and leased lines (16 percent).  During 2002, industry sources predict only minimal growth of the market for telecommunications services. However, beginning in 2003, the market should regain the double-digit expansion rate at which it grew for several years prior to the recent slowdown.

The composition of France's $11 billion telecommunications equipment market looks somewhat different than that of the services market, with wireless equipment totaling 61 percent and wireline equipment comprising 39 percent.  The growth of the overall equipment market has remained steady in recent years because increases in wireless equipment sales have offset declining sales in wireline equipment.  In 2003, however, the market for telecommunications equipment is expected to grow at a rate of 9 percent, due to the increasing demand for broadband equipment.

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