WASHINGTON-Total spending in the U.S. telecom sector rose 4.7 percent in 2003 to an estimated $720.5 billion, according to a new figures released today by the Telecommunications Industry Association.
TIA’s 2004 Telecommunications Market Review and Forecast said double-digit increases in wireless services, services in support of equipment and specialized services offset decreases in equipment spending and local- and toll-service revenues.
TIA, which represents telecom manufacturers, predicted the U.S. telecom industry will grow at a projected 9.2 percent compound annual rate between 2004 and 2007, reaching $1 trillion. The network equipment market bottomed out in 2003 at $14 billion, and a 2.3-percent increase to $14.4 billion is predicted for 2004, according to the association.
Service providers, according to the report, are looking to voice over Internet protocol, bundled services, data transport and TV to generate additional revenue, which will require new investment in equipment. TIA forecasted that network equipment spending would total $18.5 billion by 2007, climbing at a 7-percent compound annual rate from 2003.
