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Growth signs and changes

Apart from the fact the cost of copper continues to rise, the future looks good for the structured cabling, networking and telecommunications sectors heading into 2007.


November 1, 2006  


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Apart from the fact the cost of copper continues to rise, the future looks good for the structured cabling, networking and telecommunications sectors heading into 2007.

That much is evident from the conjectures, predictions and observations being released by research and analyst firms as one year ends and another is set to begin. For the most part, all are overwhelmingly bullish.

For example, an Oct. 30 news release from the Yankee Group stated that the telecommunications industry is now experiencing a rebound in carrier capital expenditures, which will continue to grow faster than carrier revenues for the next three years.

Senior analyst Nick Maynard predicted that vendors able to capitalize on this opportunity today will reap the benefits for the next-generation market share for the near future.

He added that new service deployments driving capex are influenced by development of triple-play offerings, the explosion of high-speed enterprise networks and the integration of wireless and fixed services.

There are signs of growth everywhere. For example, in late August, the Boston-based Yankee Group predicted that the next three years will be a prime period for VoIP, particularly in contact centres. The VoIP penetration rates of agent seats will increase from 16% in 2005 to more than 60% by 2009.

Perry Greenbaum writes in this issue’s cover story that the plethora of activity occurring bodes well for the structured cabling industry in a number of ways. For one, network planners have to address the need for a highly secure and fast Internet.

There is also the IP convergence factor and specifically the role video will play. Long considered the poor cousin to voice and data, Cisco Systems Inc. is hoping to change all that with its TelePresence Meeting offering, a patented remote communications offering that the company says creates in-person experiences between people, places and events, whether they live across town or across the world.

“Despite their relatively low-cost, there are a variety of reasons why traditional video systems sit dormant and dusty in conference rooms around the world,” a Cisco white paper states. “Chief among them is that the systems are not reliable, offer low quality and are too difficult to schedule and use. Once scheduled, they are frequently hobbled by technical issues, either in initial setup, or during the meeting with difficulty in seeing or hearing.”

Marthin De Beer, vice president of Cisco’s Emerging Markets Technology Group said the network has evolved from the information superhighway of the 1990s to a platform for all forms of communications, enabling new business models never possible before.

Independent consulting firm Sage Research notes that current research suggests that legacy video techhnology’s near future could resemble IP telephony’s recent past: “The widespread growth of IP telephony has introduced many enterprises to the potential power of converged networks. These systems have produced a real payback for the companies that have adopted them and may only be a preview of further benefits to be mined from converged network technology.”

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This issue marks Maureen Levy’s return to the magazine as publisher. She replaces Vaios Petsis, who left at the end of October to pursue other interests after spending nine years with the Business Information Group.

Levy, who will also maintain her current role as publisher of Canadian Consulting Engineer, played a pivotal role in turning Cabling Systems Magazine, the former name of CNS, into a success story after it launched in 1998.

She can be reached at 416 510-5111 or via e-mail at mlevy@cnsmagazine.com