Synergy reports total spending on emerging communications technologies was up 8.4% in Q3, passing sales of traditional gear

December 8, 2003

2 Min Read

PHOENIX -- The worldwide market for telecom and networking equipment rose 4.6 percent sequentially in the quarter and fell 4.0 percent over the same period a year ago. The quarter-to-quarter increase was the 1st since the Fourth Quarter of 2002, and only 2nd positive quarter in the past three years.

According to market analysis by Synergy Research Group (SRG), sales of emerging equipment as a percent of the total passed sales of traditional equipment for the first time in the third quarter of 2003. Total spending on emerging communications technologies was up 8.4 percent, evidence that organizations are increasingly deploying new telecom and networking technologies. Synergy Research Group defines traditional equipment as TDM or circuit-based devices and legacy SONET gear, and emerging equipment as Packet-Data, Packet-Voice, Next-Gen Optical, and Next-Gen Wireless.

“Enterprises are increasingly purchasing packet-based devices, putting to use the latest features to become more efficient and stay competitive,” says Joshua Johnson, Industry Analyst at Synergy Research Group. “Also, carriers are preparing for the next wave of services, and the spending on emerging equipment is laying the foundation needed to turn their business plans into successful new endeavors.”

Many countries in Asia, having less existing communications infrastructure, continue to make investments in emerging technology at a staggering rate and a number of vendors in particular are benefiting from this movement. Sales to the Asia/Pacific region came in at 29.1 percent of the worldwide total, up considerably from 21.6 percent of the total three years ago. NEC leads the region in market share, with Cisco and Huawei nearly tied for second place. Worldwide, Cisco and Huawei have gained 1.2 percent share and 1.3 percent share, respectively, in the past year.

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Synergy Research Group Inc.

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