Telecom Spending Recovery Slow, Tempered By Rise In Ethernet, Cloud
Spending for wireline services contracted in 2012, while spending on wireless services grew modestly, notes The Insight Research Corporation. It predicts telecom services revenue worldwide will grow from $2.2 trillion last year to $2.7 trillion in 2018 at a CAGR of 3.8 percent. Wireless subscriber growth compounded with rising usage will raise wireless revenues by 31 percent from current levels, yet wireline revenues will stay flat until an economic recovery kicks in, the group adds. It’s not all bad news: Ethernet, cloud and mobile apps will show double-digit annual percentage growth, with North America expected to report a 35-percent wireless hike and a 19-percent wireline broadband rise.
Five-Year Plan: 100-Gig Waves The Way To Go
According to Dell’Oro Group, total worldwide wavelength division multiplexer (WDM) market revenue will grow at a 10-percent CAGR during the next five years, driven by 40 gigabit-100 gigabit growth that will contribute to $13 billion in 2017. Demand for 100 Gbps wavelengths also is especially strong as service providers continue to expand their network capacity, with shipments growing at a 75-percent CAGR during the next five years; some 60 percent of the WDM capacity shipments will be 100 Gbps wavelengths.

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