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Thursday, 24 July 2008
Global equipment sales hit US$139bn with US$174bn forecast for 2011. Kid’s stuff really… 

Sales of service provider and enterprise telecom and datacom equipment hit US$139bn worldwide in 2007, up 13% from 2006, and are forecast to grow 26% to US$174bn in 2011. So says ‘Service Provider and Enterprise Telecom and Datacom Equipment’, a new report from communications market research firm Infonetics Research.

According to Infonetics the five-year compound annual growth rates (CAGRs) for all segments tracked in the report range from slightly negative to strong double digits from 2007 to 2011, with IPTV and IP video equipment growing the fastest, followed by service provider VoIP and IMS equipment.

“While service provider wireless and FMC equipment and enterprise routers, switches, and wireless LAN equipment make up the largest portions of revenue, the increases we’re seeing in the overall telecom and datacom equipment market are being fuelled by the transformation to IP packet networks, as evidenced by strong growth in the IPTV and service provider VoIP and IMS segments,” reports Jeff Wilson, principal analyst at Infonetics Research.

The Infonetics’ figures all seem pretty impressive. Until, that is, you have a look at forecasts for telecoms service revenues over the same period. According to the US Telecommunications Industry Association (TIA) global telecommunications revenue could hit nearly US$5tn by 2011, with growing demand for high-volume data applications driving both business and consumer markets. The TIA is currently working with TelecomView, a strategic analysis firm for the telecommunications industry, to create the ‘ICT2020’ series of reports, beginning with a brief expected in the autumn of 2008 and a full forecast in February 2009.

Phew! is what we say.
John Williamson
 
 
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