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Pastimes : Home on the range where the buffalo roam
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To: Boplicity who wrote (6993)11/27/2000 8:09:30 PM
From: Boplicity  Read Replies (1) of 13572
 
NEW YORK, Nov 27 (Reuters) - The major U.S. telecommunications service providers will spend about $42.5 billion on networking equipment in 2004, a 220-percent increase in spending from $13.3 billion in 2000, according to a market research study by Infonetics Research.

The largest increase in networking equipment spending will take place between 2000 and 2002 due to the growing number of so-called "Tier 1," or large, telecom service providers, the study said. After 2002, industry consolidation may cause expenditures to grow more slowly.

A yearly breakdown of spending, and specific areas of spending were not immediately available.

Infonetics defined the "Tier 1" companies as service providers that have a nationwide fiber-optic network.

There are currently 22 "Tier 1" service providers in the United States, but that number is expected to increase to about 25 to 27 companies over the next two years as some smaller companies expand, the study said.

Service providers -- including regional Bell operating companies, long-distance distance companies and small local telephone companies -- "have some aggressive growth strategies...(and) they indicate that their key business and technical challenges center on personnel and network growth," said Infonetics Research analyst Kevin Mitchell.
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