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Wireless Next-Generation Network Inertia

The current state of the wireless Next-Generation Network (NGN) market is directly related to the success of incumbent carriers, or the total lack of any meaningful competition that would otherwise upset the status quo, according to the latest market study by In-Stat.

Those carriers that are content with the status quo are less inclined to take risks, and tend to limit their investment in NGN, the high-tech market research firm says. Most operators that have committed to a rapid NGN migration have done so because of adverse market conditions.

"In 2007, only a few IMS equipment supply contracts were announced," says Keith Nissen, In-Stat analyst. "Most were greenfield deployments, or point solutions supporting VoIP, or IP Centrex."

In-Stat's research entitled "NGN Drivers and Inhibitors in the Global Market" covers the worldwide market for wireless Next-Generation Networks. It examines the current state of NGN development and explores the reasons why operators are making relatively risk-free investment decisions.

A detailed look at why selected operators have chosen to build an NGN is presented, along with changing attitudes regarding network architecture and configurations. The report also reviews how the prevailing carrier market conditions are impacting global equipment suppliers.

There is also discussion of some interesting, and possibly disruptive, trends that could have a profound impact on service provider markets. A worldwide capital expenditure (CAPEX) forecast covering 2008-2012 is presented, segmented by product category, network layer, and geographic region.

In-Stat's study found the following:

- On the whole, 2007 was a very good year financially for most service providers worldwide, with relatively strong growth in 3G revenue.

- 2007 worldwide wireless capital expenditure (CAPEX) spending was flat at $173 billion.

- By 2012, worldwide CAPEX spending will grow only slightly to $182 billion.

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