Telecom IT Spending To Exceed $30 Billion in 2005, Says Insight Research

The global market for operations support systems (OSS)-the computing and software IT infrastructure that performs engineering, provisioning, and management functions in telecommunications networks-will exceed $30 billion this year, claims a new report by Insight Research. However, capital spending on new systems will grow at a slower rate than IT investment in the general economy. The market research study concludes that this year European cable TV operators, wireless providers and telephone companies will spend more than their North American counterparts on the new computing systems needed to supply telecommunications services, and that by 2010 OSS investment in both Europe and Asia will exceed North American spending.

(PRWEB) April 13, 2005 -- According to Operations Support Systems 2005-2010, telecommunications network operators worldwide are expected to increase their investment in OSSes at a compounded rate of nearly four percent over the next five years, while North American investment in the computing and software systems used to acquire, serve, and bill customers will not top 2.7 percent over the same period. Telecommunications service providers will be investing selectively in areas showing the greatest potential for a fast rate of return, including wireless 3G data services and high-speed residential broadband access.

For the first time since our coverage of OSS system sales revenue began in 1990, we are seeing OSS systems and professional services sales revenue growing slower than overall telecommunications services revenue because of the continued industry restructuring," says INSIGHT president Robert Rosenberg. Service providers continue to spend, but they will only put their money into systems that support future revenue growth such as RF planning and engineering tools for high-speed wireless data or network management tools for gigabit Ethernet, IP, and wavelength services," concluded Rosenberg.

Operations Support Systems 2005-2010 forecasts global IT infrastructure spending for billing, customer care, planning/engineering, provisioning/inventory, trouble repair, network management, business management, and workforce management systems. It also projects the professional services expenditures required to implement those systems by type of carrier in four regions: North America; Europe, the Middle East, and Africa; Asia/Pacific; and Latin America/Caribbean.

A free report excerpt, table of contents, and ordering information is online at www.insight-corp.com/reports/ossfor2005.asp

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