[December 19, 2012]

Infonetics Research: Telecom Growth Rate Still Outpacing GDP Growth

Market research firm Infonetics Research released excerpts from its December 2012 Fundamental Telecom and Datacom Market Drivers report, which analyzes global and regional market trends and conditions.

ANALYST NOTE

"As we're ending 2012, Europe's crisis remains uncontained and is now spreading to Germany. The potential of shaking business confidence everywhere in the world has risen to new heights, and the IMF lowered its growth forecast and is warning of recession risks due to downward revision of global GDP, which now stands at 3.3%. Economic readings are worrisome everywhere but the U.S., but so far the impact on global telecom and enterprise remains tame, and we're forecasting capex to grow nearly 4% in 2012 over 2011," notes Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

Téral adds: "With the announcement of AT&T's (News - Alert) and Deutsche Telekom's multi-billion dollar investment plans, next year's capex outlay looks brighter."

FUNDAMENTAL TELECOM AND DATACOM MARKET DRIVERS

• Globally, mobile service revenue is the main growth engine in the overall telecom/datacom market, up 4.3% year-over-year in the first half of 2012
• User mobility, specifically BYOD anywhere, is putting pressure on carriers to move to a single network for fixed and mobile access, internet traffic, and private/premium services
• Data traffic growth is outstripping transport equipment costs: traffic is climbing 29% annually while equipment costs are falling 10%
• Software-defined networks (SDNs) are here to stay, but not today: SDNs are on service providers' minds, but it is a longer-term challenge to find implementations of hybrid SDN and non-SDN in live networks
• The phase out of stimulus monies and pressure on government budgets is decreasing public sector spending and taking a bite out of overall enterprise growth
• With security top of mind due to unprecedented threats and the growing BYOD trend, businesses everywhere are looking to integrate security into everything from smartphones to routers and switches, and are evaluating data center security appliances, cloud security services, and security for virtualized environments and public and private clouds

REPORT SYNOPSIS

Infonetics' (News - Alert) market drivers report is published twice annually to provide analysis of global and regional market trends and conditions affecting srvice providers, enterprises, subscribers, and the global economy. The report assess the state of the telecom industry, telling the story of what's going on now and what is expected in the near and long term, including spending trends; subscriber forecasts; macroeconomic drivers; and key economic statistics (e.g., unemployment, OECD indicators, GDP growth). The 40-page report is illustrated with charts, graphs, tables, and written analysis. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

CLIENT CONFERENCE CALL

Clients: Join Stéphane Téral Dec. 20 at 9 AM Pacific for a live conference call on fundamental market drivers. Log in for password: http://bit.ly/LIH7eq

UPCOMING INFONETICS WEBCASTS

• WEBINAR: Scaling Small Cell Backhaul, with Alcatel-Lucent, Ceragon, Vitesse (Feb. 2013)
• WEBINAR: Integrating Carrier WiFi (News - Alert) with the Mobile Network, with Ruckus (Feb. 2013)
• WEBINAR: 100G Optics: Why Operators Are Upgrading Now, w/ Cisco, Cyan, Oclaro (Mar.)
• WEBINAR: Core Routers Move to the Metro, with Alcatel-Lucent (Apr.)
• WEBINAR: SMS/MMS Security Platforms for Mobile Carriers (Sponsorships available)
• WEBINAR: Service Provider SDNs: Here to Stay (Sponsorships available)
• WEBINAR: Routing vs. Ethernet for LTE (News - Alert) Backhaul (Sponsorships available)
• WEBINAR: The Demand Boom in Diameter Signaling Controllers (Sponsorships available)

RECENT / UPCOMING RESEARCH

Download Infonetics' market research brochure, events brochure, publication calendar, report highlights, tables of contents and more at http://www.infonetics.com/login.

• 3G and 4G (LTE, WiMAX) Broadband Devices and Subscribers Market Report
• Mobile Backhaul Wireline Equipment Vendor Leadership: Global Service Survey
• Service Provider Capex, Opex, Revenue, and Subscribers Database
• Telecommunications Equipment Vendor Leadership Scorecard

REPORT HIGHLIGHTS

• Infonetics Overall Market Trends and Forecasts research brief: http://bit.ly/ZgRAGW
• Operators stepping up equipment spending in 2013, led by Asia; growth returns to Europe
• Mobile operators feeling pressure from OTT and free services
• Wireless LAN gear, star of the networking industry, tops $1 billion per quarter
• Weakness in Europe, softness in public sector braking enterprise switch growth
• Mobile, data center verticals driving DDoS prevention security market

TO BUY REPORTS, CONTACT:

N. America (West), Asia, Latin America: Larry Howard, [email protected], +1 408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, [email protected], +1-408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, [email protected], +44-755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

Infonetics Research (News - Alert) (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics' About Us slides at http://bit.ly/QUrbrV.

Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20121219006713/en/

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