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New Growth in Telecom & Datacom Equipment

Sales of service provider and enterprise telecom and datacom equipment topped $123 billion worldwide in 2006, up 9 percent from 2005, and is forecast to grow 20 percent to $148 billion in 2010, according to Infonetics Research. Once again, Asia-Pacific will be the market to watch.

Their latest report, "Service Provider and Enterprise Telecom and Datacom Equipment," highlights the 5-year compound annual growth rates for all segments range from flat to strong double digits from 2006 to 2010 -- with the IPTV, 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.

Infonetics report other highlights include:

- The IPTV equipment market will double its proportion of the total telecom and 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.

- Service provider products represent the majority of total telecom and datacom equipment sales, although its proportion of the total will decrease slightly as spending on enterprise products increases through 2010.

- The service provider next-generation voice and IMS market represents 3 percent of the total telecom and datacom market now, growing to 5 percent in 2010.

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

- 32 percent of 2006 telecom and datacom revenue came from EMEA, 30 percent from North America, 28 percent from Asia-Pacific, and 10 percent from CALA; spending in the Asia-Pacific market is growing the fastest.

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