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Sales booming in service provider, entererprise telecom and datacom markets

Sales of service provider and enterprise telecom and datacom equipment topped US$123 billion worldwide in 2006 -- u...


April 20, 2007  


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Sales of service provider and enterprise telecom and datacom equipment topped US$123 billion worldwide in 2006 — up 9% from 2005 — and is forecast to grow 20% to US$148 billion in 2010, says a new report from Infonetics Research.

According to the report, “Service Provider and Enterprise Telecom and Datacom Equipment,” the 5-year compound annual growth rates for all segments tracked in the report range from flat to strong double digits from 2006 to 2010, with the IPTV and service provider VoIP and IMS equipment markets showing the most growth.

“The spending increase in the overall telecom and datacom equipment market is being fueled by service providers upgrading from TDM to IP packet networks to support voice, video, and data, as well as enterprises transforming their networks to integrate data, multimedia, and security,” said Infonetics Research analyst Jeff Wilson.

The report notes that:

* The IPTV equipment market will double its proportion of the total telecom/datacom equipment market between 2006 and 2010.

* Recent interest in NAC and the continued integration of security, traffic management, and other high-value functions into routers and switches will help boost the enterprise router and switch market through 2010.

* The service provider router and switch market will experience steady growth due to a positive capex environment and a flurry of IP network transformation.

* The network security appliance and software segment will continue to be a hot market because of the evolution of threats and increasing integration of security into the fabric of the network.

* Cisco remains the revenue-leading vendor with 20% of the total worldwide market; Alcatel-Lucent is now second.