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IPTV and IP Video Equipment Rapid Growth

Revenue from service provider and enterprise telecom equipment reached $139 billion worldwide in 2007, up 13 percent from 2006, and are forecast to grow 26 percent to $174 billion in 2011, according to a market study by Infonetics Research.

According to their report, the 5-year compound annual growth rates (CAGRs) for all segments tracked in the report range from slightly negative to strong double digits from 2007 to 2011, with IPTV and IP video equipment growing the fastest, followed by service provider VoIP and IMS equipment.

Service provider wireless and FMC equipment and enterprise routers, switches, and wireless LAN equipment make up the largest portions of revenue.

The increases Infonetics say they are seeing in the overall telecom and datacom equipment market are being fueled by the transformation to IP packet networks, as evidenced by strong growth in the IPTV and service provider VoIP and IMS segments.

Highlights from the report include:

- The largest equipment category, service provider wireless and FMC, will decrease its share of overall telecom and datacom revenue by 4 points between 2007 and 2011, as fast growing segments like IPTV and carrier VoIP and IMS gain share.

- About one third of all 2007 telecom/datacom equipment revenue came from the Europe/Middle East/Africa (EMEA) region.

- China and India will drive a significant jump in carrier capital expenditures, or capex, in 2008 as a result of network construction projects combined with currency appreciation against the U.S. dollar.

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