FRANKFURT, Oct 18 (Reuters) - Germany's telecommunicationsand IT industry association expects slowing growth next year asa boom in demand for expensive smartphones ends, sales of PCsand notebooks slow and price competition and regulation dampentelecom operators' revenues.
Industry revenues are expected to grow 1.2 percent to 162billion euros ($181 billion) in 2017, industry associationBitkom said on Tuesday, reiterating its forecast for 1.7 percentgrowth in 2016.
Bitkom represents companies employing a total of 1 millionpeople, more than any other sector in Germany bar engineering.Major employers include SAP, Deutsche Telekom and United Internet.
"Considering economic turbulences such as Britain's decisionto leave the European Union or recent concerns about the bankingsector, it is good news that we are able to confirm ourforecasts that we made in spring," said Bitkom PresidentThorsten Dirks, who is also chief executive of TelefonicaDeutschland.
Software will continue to drive growth, Bitkom said, withsales up 6.2 percent in 2016.
Network operators - who account for one-third of Bitkom'stotal industry sales - are expected to spend 2.1 percent more oninfrastructure next year but make 0.6 percent less in revenue.
($1 = 0.8928 euros) (Reporting by Georgina Prodhan; Editing by Mark Potter)
Vodafone (VOD)