TIA Predicts Return to Growth for both Network Services and Equipment Markets

The Telecommunications Industry Association (TIA) is predicting a 6.1% increase in spending in the United States on network transport services during 2003, achieving a total market size of $345.3 billion. Unlike 2002, TIA predicts growth will be positive across all transport services, though greatest in wireless services and specialized services such as high-speed Internet access. Local service revenues will expand by 5.8%, toll services will return to positive growth with a 1.7% increase, and wireless services will sustain 12% growth in 2003. Growth in high-speed Internet access will generate additional network traffic to sustain growth through 2006. TIA expects to see major infrastructure buildouts resume as service providers prepare for greater numbers of broadband subscribers. As a result, TIA expects the wireline network equipment and facilities market to expand by an 8.5% compound annual rate from 2003 to 2006, reaching $30.4 billion in 2006. The wireline network equipment market declined by 49% in 2002, according to TIA. The 2003 edition of TIA's study was prepared in anticipation of the FCC's recent decision regarding rules for competition in the local services market.
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