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F&S Looks at Test Gear

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5/28/2003

SAN JOSE, Calif. -- Reduced capital expenditure due to the economic slowdown is limiting end-users' demand for test equipment. Struggling vendors are pinning their hopes on evolving network technologies for market revival, as testing is essential for these new technologies.

New analysis from Frost & Sullivan (www.testandmeasurement.frost.com ), Opportunity Analysis of Telecommunication & Data Communication Test Equipment Market, reveals that this market generated revenues worth $2 billion in 2002 and is likely to reach $2.3 billion in 2006.

"Vendors are hard-pressed to sell, as network equipment manufacturers, and service providers are re-evaluating their expansion plans and prefer to wait until the capital markets improve," say Frost & Sullivan Research Analysts Jessy Cavazos and Sailaja Tennati.

Moreover, the shift in purchasing decision to the top management is prolonging sales cycles and reducing the revenue flows. The demand for various testing equipment is expected to pick up as new network technologies evolve. These include dense wavelength division multiplexing, Next-generation Synchronous Optical Network/Synchronous Digital Hierarchy (SONET/SDH), Gigabit Ethernet (GigE), Resilient Packet Ring (RPR), Voice over Internet Protocol (VoIP), digital subscriber line (xDSL) and Asynchronous Transfer Mode over Multi-Protocol Label Switching (ATMoMPLS).



Frost & Sullivan

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