Asia-Pacific SMBs to spend $50 bln on telecom in 2007

Small and medium businesses (SMBs, or companies with up to 999 employees) across the Asia-Pacific region outside of Japan (APeJ) are on track to invest $50 bln on telecommunications equipment and services in 2007. This is up some 5% over 2006, according to Access Markets International Partners. In 2006, only 8% of desk phones of medium businesses (MBs or companies with 100 to 999 employees) in a mature market like Australia had IP phones. Session Initiation Protocol (SIP) will reduce the price, making such solutions even more affordable. As for Unified Messaging, only 16% of Australia?s MBs are utilizing this service.

LAN switches up 6% over the next 5 years

In-Stat expects enterprises to continue to spend the most on this area for at least the next five years, with LAN switch spending experiencing a 6% CAGR in this market. While LAN switch spending accounts for the largest amount of spending, it is security appliances and enterprise WLAN access points that will see the most growth, each increasing with double-digit annual growth through 2011. In-Stat expects networking infrastructure spending growth trends to be fairly similar across size of business within the enterprise market. The largest enterprises, those firms with more than 10,000 employees account for the largest share of this market, roughly 53%. Enterprises account for 49% of US business networking infrastructure spending.

Telecom services grew 8.2% in 2006

Revenue from telecom services and equipment grew 8.2% in 2006, to $1.69 trillion, but the fixed services sector shrank across the developed world for the second year in a row. The total market will pass $2.16 trillion in 2011, Gartner reports.

4 bln phone lines globally

International Telecommunications Union counts 1.27 bln fixed lines and 2.68 bln mobile accounts. The total number of people represented by those figures is unclear because many people, particularly in industrial countries, have both kinds of service.

14% of spending on US wireline belongs to mid-sized businesses

Mid-sized businesses account for approximately 14% of the current US business spending on wireline data services. Mid-sized businesses are projected to spend an estimated $5.6B in the US on wireline data services in 2007. IP VPN and Ethernet services currently account for approximately 18% spending on wireline data services in the mid-sized business market, with this figure projected to increase to 37% by 2011.

71 mln fiber broadband users in 2009

By 2009, global telco broadband subscribers will rise to 373 mln, nearly equal to the 406 mln cable subscribers around the globe. The following year, global broadband telco subscribers will rise to 413 mln, exceeding the number of cable subscribers for the first time. In 2009, 71 mln telco broadband subscribers will have very high-speed fiber connections that can support an equivalent and potentially superior video service to that provided by MSOs, iSuppli says.

Mobile data services spending to grow at 29% a year

In-Stat expects telecom spending growth trends to be fairly similar across size of business within the mid-sized business market. The smallest mid-sized firms, those with 100 to 249 employees, account for the largest%age of this market, roughly 45%. Mid-sized businesses account for 16% of US business telecom spending. In-Stat expects a 5-year CAGR of 29% for mobile data services spending among mid-sized firms. Wireless services (voice and data) spending will surpass wireline services spending in this market in 2009. The government, healthcare, and professional services verticals are expected to see the strongest growth in telecom spending going forward, each at a 5-year CAGR of 6%.

Asia Pacific telecom market to grow at 3.6% a year

The Asia Pacific telecom market will advance at a 3.6% CAGR, increasing from $17.2 bln in 2006 to $20.6 bln in 2011. Latin America spending will expand from $3.1 bln in 2006 to $4.2 bln in 2011, rising at a 6.1% CAGR. In Canada, popular local consumer titles and an expanding telecommunications sector will buoy consumer and trade magazine advertising, PriceWaterhouseCooper said.

55% of US organizations plan to buy network access control solutions

55% of US organizations plan to buy in-line network access control solutions, and another 11% aren’t sure if they’ll buy in-line or out of band. 80% of large organizations interviewed plan to enforce NAC in the network, and 51% plan to enforce at the client (some do both). Of the respondents interviewed who plan to deploy NAC by 2008, 32% have already deployed NAC. The need to demonstrate policy or regulatory compliance (64% and 54% respectively) is up as a driver for deploying NAC compared to in 2006, Infonetics says.

Eastern Europe enterprise network services up 0.1% in 2006

Eastern Europe’s enterprise network services revenue grew 0.1% to $7.4 bln in 2006, driven by broadband growth and development in IP services. But lower cost IP services growth will not counter declines in traditional voice and data services, and the market will decline to $6.5 bln by 2011, Gartner says.

IP VPN and Ethernet services generate 30% of wireline revenues

IP VPN and Ethernet services currently account for approximately 30% of enterprise wireline data revenues, with legacy services such Private Line, Frame Relay and ATM comprising approximately 55%. Looking forward to 2011, In-Stat expects this revenue mix to essentially reverse, with the growth being in IP VPN and Ethernet services.

$41 bln to be spent on telecom equipment in 2007

Telcos in 2007 are expected to spend nearly $41 bln on equipment, the highest annual level since 2002. However, this spending will be up only 1.6% from $40.4 bln in 2006. In comparison, telco equipment spending rose by 10.7% in 2006 and by 8.3% in 2005, iSuppli says.