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Research and Markets: Major Increase in Telecom Spending Due to Strong Competitive Pressures

Posted on: Friday, 1 October 2004, 06:00 CDT

DUBLIN, Ireland, Oct. 1 /PRNewswire/ -- Research and Markets (http://www.researchandmarkets.com/) has announced the addition of Telecom Spending Spotlight, 2004 to their offering.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040820/RESEARCH )

In December 2003, Gartner Dataquest released its worldwide telecom-spending forecast, predicting that global telecom equipment and services spending will reach $1.36 trillion by the end of 2004, an increase of 5.3% over 2003. The Telecommunications Industry Association (TIA) estimates that global telecom equipment and services spending will total $2.27 trillion by year's end -- roughly $910 million more than Gartner's forecast.

This Telecom Spending spotlight report looks into the competitive pressures -- both within and outside the telecom industry -- that are pushing carriers to increase their capital spending in 2004. It includes comparative estimates and aggregated survey data from a wide range of authoritative sources to provide insights into the trends driving telecom spending and answer such questions as:

-- At what rate will worldwide telecom equipment and services spending

increase during the next several years?

-- Which segments of the telecom industry will see the greatest

transformation? Which are experiencing the greatest growth?

-- How are leading carriers shifting capital spending priorities?

-- What are the drivers of enterprise network equipment spending?

-- Mobile computing solutions?

-- And many more...

In recent months, leading US telecommunications service providers have announced several new spending initiatives, from the roll out of fiber to the premises (FTTP), to the deployment of VoIP infrastructure, along with upgrades to their wireless networks. With corporate profits improving, many businesses are also beginning to increase their spending on telecom equipment, especially as firms announce their plans to migrate to IP-based networks. Taken together, these initiatives indicate an industry-wide rebound.

Here is an example of the type of statistics and analysis that fill the report:

Worldwide Telecom Spending Forecasts

This difference is due in part to the TIA's broader definition of telecom services, which includes network and equipment support services, in addition to spending on telecom equipment and transport services. By contrast, Gartner includes some enterprise network and equipment support services as part of its IT services spending estimates. Network and equipment support services are expected to lead international telecom spending growth, as companies continue to look for ways to reduce costs by turning to third party IT service providers.

Spending on DSL equipment is also expected to boost overall telecom spending, as carriers in the Asia-Pacific region in particular continue to invest in high-speed Internet connectivity.

For more information visit http://www.researchandmarkets.com/reports/c5539

Laura Wood

Senior Manager

Research and Markets

press@researchandmarkets.com

Fax: +353 1 4100 980

Photo: http://www.newscom.com/cgi-bin/prnh/20040820/RESEARCH

Research and Markets

CONTACT: Laura Wood, Senior Manager, press@researchandmarkets.com, Fax:+353 1 4100 980, of Research and Markets

Web site: http://www.researchandmarkets.com/http://www.researchandmarkets.com/reports/c5539

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