Telecom equipment market to reach $51 billion in 2001

Nov. 1, 1997

Telecom equipment market to reach $51 billion in 2001

A study by Business Communications Co., Norwalk, CT, predicts that while wireline and two-way cable-television equipment sales will continue to grow through 2001, cellular telephony sales will decline.

According to The Future for Telecommunications Equipment and Services, the total market for telecommunications equipment will achieve an average annual growth rate (aagr) of 2.5% between 1996 and 2001. This means 1996 sales figures of $45 billion will reach $51 billion in 2001.

Looking at individual market sectors, wireline sales were $24.4 billion in 1996. This figure is forecast to reach $29.9 billion by 2001, an aagr of 4.2%. Similarly, while two-way cable TV had little market value in 1996, according to the study, this sector will grow to $1.8 billion by 2001. However, cellular telephones, which enjoyed sales of $20.9 billion last year, will see that figure shrink to $19.5 billion in 2001, says Business Communications.

The study further predicts that approximately $310 billion in equipment for new services will be required over the next 10 years to keep pace with network demands. Replacement equipment worth $200 billion will be needed over the same period, bringing the total aggregate market to $510 billion over the next 10 years.

Equipment for new services will enjoy an aagr of 3.2% over the study period, rising from $26.3 billion in 1996 to $30.8 billion in 2001. Replacement equipment will increase slightly, from $19 billion in 1996 to $20.4 billion in 2001, for an aagr of 1.4%

The Future for Telecommunications Equipment and Services, G-198, is available from Business Communications Co. Inc., 25 Van Zant Street, Norwalk, CT 06855, at a cost of $2750. The company`s phone number is (203) 853-4266. u

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