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World Communications Test Services Markets: Customer Perception of Value of Test Services Remains a Challenge
[January 26, 2007]

World Communications Test Services Markets: Customer Perception of Value of Test Services Remains a Challenge


DUBLIN, Ireland --(Business Wire)-- Research and Markets (http://www.researchandmarkets.com/reports/c49239) has announced the addition of Frost & Sullivan's new report: World Communications Test Services Markets to their offering.

The Frost & Sullivan research service entitled World Communication Test Services Market provides an overview of the different types of communication test services along with their segmentation, their revenues and market share and growth. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following markets: broadband wireless test services, broadband wireline test services, security test services, and application layer test services

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:


By application:

-- Research & Development (R&D)

-- Installation & Maintenance (I&M)

-- Manufacturing

By technologies:

-- Broadband Wireless

-- Broadband Wireline

-- Security Test Services

-- Application Layer Test Services - IP TV, VoIP, WiMax etc

Technologies

The following technologies are covered in this research:

-- Broadband Wireless Test Services: This segment includes various services provided by test equipment vendors to test wireless technologies including cellular and WiFi.

-- Broadband Wireline Test Services: This segment refers to various test services provided by test equipment vendors that test broadband wire line technologies such as Ethernet, Gigabit Ethernet, LAN, MAN, etc.

-- Security Test Services: This segment includes network security testing for firewalls, virtual private networks (VPN), and intrusion detection systems to protect corporate information.

-- Application Layer Test Services: These services are provided by test equipment vendors for application layer (layer 7) technologies such as VoIP, IP TV, web applications, etc.

Market Overview

Convergence to IP is Driving Demand for Communication Test Services

With the move toward telecommunication convergence also referred to as Triple Play, telecom companies are beginning to offer Internet protocol television (IPTV) services and cable television together with voice services to their portfolio. As a result, service providers, carriers, and private enterprises are increasingly adopting Internet protocol (IP) infrastructure. It is becoming necessary for them to validate if they can run voice and video traffic, which was traditionally handled on separate networks, on one IP platform. Hence, this trend toward convergence is developing, as a major driver for the uptake of communication test services.

In a continuance of the above trend, enterprises are now beginning to go commercial with their voice over Internet protocol (VoIP) offerings. Service providers and carriers are making steady investments in VoIP and IP multimedia subsystem (IMS) architectures, especially due to convenience and cost savings associated with these technologies. As end uses become more confident and willing to invest in new technologies such as VoIP, there would be an increase in the number of deployed networks, which in turn will increase the need for test equipment and also services that are necessary to test those networks, explains the analyst of this research service. This apart, the growth in mobile subscribership, particularly in developing countries, and the introduction of new technologies such as WiMax is also expected to raise the demand for communication test services.

Customer Perception of Value of Test Services Remains a Challenge

As network operators are under tremendous pressure to optimize capital spendings, customers increasingly want to spend less on testing services while also incorporating more bandwidth. This leads them to look for less expensive test equipment and services and there are a number of customers that either do not test their telecom equipment or see any value into spending money into testing services. Further, many companies are also not aware of the crucial need to test their communication equipment or have any kind of on-site expert, thereby making it the task of test equipment vendors to promote the requirement for testing services. As an added challenge many of the next generation networks (NGNs) are based on relatively new and young technologies. In VoIP, for instance, the lack of a single standard or protocol governing VoIP restricts the market growth for test equipment also slowing the demand for testing services.

Among the application segments, the installation and maintenance (I&M) segment is the fastest growing and is expected to gain more prominence over the forecast period, due to the increased demand from service providers to test their communication equipment. The manufacturing segment of the communication test services market is the second fastest growing segment of the market, and among the end users and service providers (SPs) continues to account for the largest share of the communication test services market, says the analyst. While SPs are likely to remain strongest end-user market for vendors during the remainder of the forecast period, it is the enterprise end-user segment that is likely to see the fastest growth due to the massive VoIP and NGN deployments by this segment.

For more information visit http://www.researchandmarkets.com/reports/c49239

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