Telecom, Datacom Equipment Sales To Hit $143.5 Billion By 2009: Report

Worldwide telecom and datacom equipment revenue will grow from $107.9 billion in 2005 to $143.5 billion in 2009, led by an annual growth rate of 99 percent for IPTV equipment, and surging VoIP-related sales, according to a new report from...

May 12, 2006

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Worldwide telecom and datacom equipment revenue will grow from $107.9 billion in 2005 to $143.5 billion in 2009, led by an annual growth rate of 99 percent for IPTV equipment, and surging VoIP-related sales, according to a new report from Infonetics Research.

The largest portion of revenue comes from wireless broadband and mobile radio access equipment, but the growth is being largely driven by "phenomenal growth" in service provider next generation voice equipment and broadband aggregation and IPTV equipment. The report notes that wireless LAN equipment sales are surging, but account for only a very small percent of the market overall.

The reports highlights three trends that are driving growth: broadband Internet access; carriers moving to a single converged network for voice, video, and data; and the convergence of mobile and fixed wireline networks of data, voice, and video. In addition, security concerns will add to spending as well.

In addition, the report also found:

* Cisco is the revenue-leading vendor in worldwide telecom/datacom equipment market share, with 19%. Nortel is in second place, and Huawei is third, followed closely by fourth-place Alcatel and fifth-place Siemens.* The service provider next-generation voice and IMS market will double from two percent of the total telecom/datacom market to four percent in 2009, driven by the move to IMS and by fixed-mobile convergence.

* Sales of wireless broadband and mobile radio access equipment will slow in 2006 as strong spending in GSM/CDMA shifts to spending on 3G equipment.

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