Infonetics Forecasts Growth for Tier 1 Service Provider [...]
Infonetics Forecasts Growth for Tier 1 Service Provider Equipment Expenditures
📅 - US and Canadian Tier 1 service provider network equipment expenditures will grow 70%, from $9.6 billion to $16.3 billion between 2001 and 2005, according to a market research study released today by Infonetics Research (infonetics.com), "The Tier 1 Service Provider Opportunity, US/Canada 2001."
"Although the 31 US/Canadian Tier 1 service providers have more resourcesthan the smaller service providers, they're definitely feeling the effectsof the economic slowdown," said Infonetics Research analyst Kevin Mitchell,co-author of the study. "Tier 1 service providers are cutting capitalexpenditures, but they're still spending billions on equipment because theyneed to rollout newer, higher margin advanced data services and expand theirnetwork to keep up with the traffic demand. Their major concerns are nowrevenues and profitability."
Despite the overall market pall, there are some bright spots as Tier 1service providers adopt new technologies. Some examples from the study:
73% of respondents will use MPLS for traffic engineering in 2002, upfrom 45% in 200173% of respondents will offer VPN services both in 2001 and 200264% of respondents will deploy next gen voice equipment in 2002
This 247-page study features 106 exhibits and in-depth coverage of manytopics, including:
A 5-year forecast of US and Canadian Tier 1 service providerexpenditures through 2005, with breakouts for edge and CPE Service providernetwork infrastructure and plans for access technologies, backbonearchitecture, and optical architecture Wholesaling and outsourcing ports andservices (dial, DSL, firewalls, VPNs, etc.)Management and billing softwareManaged security and VPN servicesNext gen voice servicesData network product expendituresCustomer account information, including service revenue breakdownsPurchase process, including information sources and manufacturerselection criteriaService provider segments and sub-segments and how they relate toone another
For further details, please visit the Infonetics Web site.
"Although the 31 US/Canadian Tier 1 service providers have more resourcesthan the smaller service providers, they're definitely feeling the effectsof the economic slowdown," said Infonetics Research analyst Kevin Mitchell,co-author of the study. "Tier 1 service providers are cutting capitalexpenditures, but they're still spending billions on equipment because theyneed to rollout newer, higher margin advanced data services and expand theirnetwork to keep up with the traffic demand. Their major concerns are nowrevenues and profitability."
Despite the overall market pall, there are some bright spots as Tier 1service providers adopt new technologies. Some examples from the study:
73% of respondents will use MPLS for traffic engineering in 2002, upfrom 45% in 200173% of respondents will offer VPN services both in 2001 and 200264% of respondents will deploy next gen voice equipment in 2002
This 247-page study features 106 exhibits and in-depth coverage of manytopics, including:
A 5-year forecast of US and Canadian Tier 1 service providerexpenditures through 2005, with breakouts for edge and CPE Service providernetwork infrastructure and plans for access technologies, backbonearchitecture, and optical architecture Wholesaling and outsourcing ports andservices (dial, DSL, firewalls, VPNs, etc.)Management and billing softwareManaged security and VPN servicesNext gen voice servicesData network product expendituresCustomer account information, including service revenue breakdownsPurchase process, including information sources and manufacturerselection criteriaService provider segments and sub-segments and how they relate toone another
For further details, please visit the Infonetics Web site.
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