Growth in network spending to surge next year, claims new report


2015 could be a bumper year for suppliers of telecom and datacom network equipment and software, new research has claimed, with Huawei overtaking Ericsson as the world's biggest supplier of service provider equipment.

The research, from Infonetics, said spending on telecom and datacom equipment and software will top €739.4 billion cumulatively during the next five years. Last year, sales of these products will hit €135.3 billion, up three percent on the previous year.

Infonetics said the current leaders in this sector have held the same shares as in 2013. The top five, in rank order, are Cisco, Huawei, Ericsson, Alcatel-Lucent, and ZTE. In the enterprise market, Cisco is number one, followed "distantly", and in alphabetical order by Avaya, Brocade, HP, and Juniper. 

Jeff Wilson, Principal Analyst at Infonetics, said: "Despite the fact that enterprises and service providers are in the middle of massive network upheavals due to the evolution of software-defined networking (SDN) and network functions virtualization (NFV) technology, the telecom and datacom networking equipment and software market is on track to grow annually through 2018 with the fastest growth coming in 2015."

Michael Howard, Co-Founder of Infonetics, said: "Looking at just the service provider equipment space, we're seeing a shakeup in vendor market share, with Huawei leapfrogging longtime number-one Ericsson to take the top spot in 2013. While Huawei's been doing well in a number of regions, China's economy is a key factor keeping Huawei's growth so strong."

Among the operators who plan to spend heavily in the coming years are Vodafone, who announced its two year €8.2bn Project Spring late last year.

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