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Thu 3 May 2007 12:21 PM

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IPTV set to drive sales of telecom equipment

Sales of telecom and networking equipment are set to grow 20% to US$148 billion by 2010, according to the latest report from research firm Infonetics.

Sales of telecom and networking equipment are set to grow 20% to US$148 billion by 2010, according to the latest report from research firm Infonetics.

Growth will be led by the internet protocol television (IPTV) equipment market, which is expected to double its share of the total telecom and datacom equipment market between 2006 and 2010, the report predicted, followed by service provider voice over IP (VoIP) and IP multimedia subsystem (IMS) equipment markets.

Demand for network security products is also anticipated to be high, the report said, as security is increasingly integrated into the fabric of networks.

The predicted expansion comes on top of already strong growth in the market - worldwide telecom and datacom equipment revenue rose 9% in 2006 to US$123 billion, with EMEA accounting for 32% of the total.

"The spending increase in the overall telecom and datacom equipment market is being fuelled by service providers upgrading from TDM (time division multiplexing) to IP packet networks to support voice, video and data, as well as enterprises transforming their networks to integrate data, multimedia and security," Infonetics analyst Jeff Wilson said in a statement.

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