Convergence drives increase in telecom and datacom equipment sales

Sales of service provider and enterprise telecom and datacom equipment topped £64.7bn worldwide in 2006, up 9% from 2005, according to analyst firm Infonetics Research.

Sales of service provider and enterprise telecom and datacom equipment topped £64.7bn worldwide in 2006, up 9% from 2005, according to analyst firm Infonetics Research. Infonetics said the spending is forecast to grow 20% to £74bn in 2010.

"The spending increase in the overall telecom and datacom equipment market is being fuelled 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 analyst Jeff Wilson.

Cisco remains the revenue-leading supplier with 20% of the total worldwide market, with the merged Alcatel-Lucent now second.

Infonetics said 32% of 2006 telecom/datacom revenue came from Europe, the Middle East and Africa, with 30% from North America.

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