Week in research: Telecom equipment sales recover; Peru a ripe target for investment

Telco equipment on the upswing: The recession put a big damper on sales of telecom and datacom equipment, but there are encouraging signs that the market is picking up. "...(R)evenues continue to rise and will do so through 2015 at an overall compound annual growth rate (CAGR) of 5.5%," says Jeff Wilson, principal analyst at Infonetics Research. "Service provider mobile and wireless infrastructure and enterprise and data center networks make up the largest portions of revenue, and growth through 2015 is fueled by a wide variety or product segments, from communications and security in the enterprise, to service provider IMS (IP Multimedia Subsystems), routing, switching, and Ethernet. We are encouraged to see growth in all but two of the markets we track within this industry." Worldwide revenue in 2010 climbed 6 percent from 2009, to $160.1 billion. That figure should climb to $209.1 billion by 2015, Infonetics says. News release

Infonetics telecom datacom 2011

Mobile VoIP takes off: Thanks to plusses like not requiring extensive investment or equipment, mobile VoIP is seeing increased demand and sales. Research and Markets predicts that this segment over the next four years will see a CAGR of 57 percent. Market growth is somewhat stymied in North America, where concerns about data security are being addressed. However, as wireline and wireless network capabilities improve, growth should continue. News release

A juicy telecom target: With comparatively liberal telecom regulations and a high GDP growth rate, investors are increasingly looking at Peru as a promising market, according to Research and Markets. Peru's telecom sector grew 13 percent in 2010 to $4.5 billion and will likely see $4.5 billion in revenue this year. Not surprisingly, mobile, broadband, and pay TV are the fastest growing segments. Already, Asian operators like Vietnam-based Viettel as well as ChinaTel (via its subsidiary Perusat) are entering or in the Peruvian telecom market, with particular interest in mobile broadband. News release

IPv6 plans go into action: Infonetics Research reports that 83 percent of the service providers they interviewed are either deploying IPv6 or plan to deploy it by next year, and 100 percent have plans to migrate to the enhanced Internet protocol. "With IPv4 addresses running out in some places in the world by 2012, and as many as 15 billion machine-to-machine (M2M) devices expected to be connected to the Internet by 2015, each needing its own IP address, IPv6 migration has become a front-and-center issue for carriers," notes Michael Howard, principal analyst and co-founder of Infonetics Research." News release

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