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Communications Equipment Rebound Predicted

Photonics.com
Jul 2004
NEW YORK, July 29 -- A rebound in expenditures on enterprise networking equipment and telecommunications -- the two main markets for communications equipment -- is underway and is expected to continue throughout 2004, says Standard & Poor's Equity Research in a semiannual study of the industry.

The survey, "Industry Survey on Communications Equipment," published twice yearly by investment research company Standard & Poor's, examines issues affecting the industry, including industry convergence, accelerating data traffic, the transition to packet switching, voice-over-internet protocol, third-generation networks and building out the last mile, or "edge," of data networks to bring high-speed communications into more households and businesses.

"Convergence of the global communications infrastructure toward a series of linked networks presents long-term opportunities for communications equipment providers," said Ari Bensinger, communications aquipment analyst, Standard & Poor's Equity Research Services, and author of the survey. "As telecom and cable companies enter each others' markets, they will need to upgrade their infrastructure. The more competitive environment will also create new demand for companies that can help customers build and manage multipurpose networks."

"Spending on communications equipment should continue to improve as we anticipate telecom services providers will spend $30 billion in 2004, even with last year but a reversal of steep spending declines in previous years," Bensinger said. "Adding to that, positive key economic indicators, such as higher employee payroll growth, point to an improving technology spending environment among enterprise customers."

For more information, visit: www.standardandpoors.com



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