Network operators fuel telecoms kit bonanza

Sales forecast to rise 20 percent over the next three years.

Sales of telecoms equipment have grown by nine per cent year on year since 2005, and are forecast to increase by 20 percent by 2010, according to new research.

A study from analyst house Infonetics Research found that network operators are undertaking extensive upgrades to handle the boom in video and data traffic. The IPTV market, in particular, is expected to double in the next three years.

"The spending increase in the overall telecoms and datacoms 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 Research analyst Jeff Wilson.

Cisco Systems remains the leading equipment vendor, followed by Alcatel/Lucent in second place.

Europe accounts for the greatest amount of current spending at 32 percent, but the Asia Pacific region is growing fastest, according to Infonetics.

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