SAN FRANCISCO-Continued growth of the Internet and continued deregulation are fueling the tremendous change in the telecommunications equipment market, said Sutro & Co. in its newly issued research report.
Sutro’s Quarterly Telecommunications Review reports that rapid growth is rendering some traditional telecommunications equipment obsolete.
Although carriers are beginning to adopt next-generation technologies, they have more than $1 trillion invested in existing infrastructure.
Thus, “the transition to new-generation networks will be a gradual migration occurring in multiple stages rather than a replacement of existing infrastructure,” the report said.
Sutro analysts estimate the total worldwide market for telecommunications equipment is about $200 billion a year. Sales of wireless equipment, which includes wireless switches, are currently running at about $50 billion and are growing by 20 to 25 percent a year, said the firm.
