TelecommunicationsIndustry Association (TIA)

Webinar

Growth on the ICT Enterprise Horizon Analysis Based on TIA’s 2010 ICT Market Review & Forecast

Presented by Economist Arthur Gruen, With Independent Analyst Ashok Kumar, New Media Systems, Inc.

April 1, 2010

3-5 Year Forecast and Global in Scope

• Report produced by TIA annually since 1986• Economists Wilkofsky-Gruen Associates• Online version through TelecomTV• Segments information by:

– Geography (U.S., international, global)– Sectors & services:

• Landline• Wireless• Enterprise• Network equipment• Broadband• VoIP• Data transport• Internet access

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Global Market Forecast

• Mobile data-services demand skyrocketing• Average Revenue Per User (ARPU) principal driver

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Enterprise Market Drivers

• Post-recession recovery 2010-13 dominant driver for next four years

• Boom in videoconferencing and Web conferencing• Convergence to IP technologies• Need for more bandwidth• Upgrades to accommodate the transition to IPv6

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2013 Market - $565B

We expect the overall market to rise to $565B in 2013 from $499.4B in 2009, a 3.1% compound annual increase.

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U.S. Equipment Spending

The total enterprise equipment market will expand at a 3% compound annual rate to $112.6B in 2013 from $100.1B in 2009.

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Voice Systems/Messaging Rebounds

By 2013 voice systems and voice messaging will be the faster-growing category.

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Tracking the Rebound

Overall voice-centric market projected to expand at a 5% compound annual rate during the next four years, rising to $28.2B in 2013 from $23.1B in 2009.

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Revisiting Promise of UC

Enhanced productivity will play a role in promoting growth for the UC market, which should stabilize in 2011 and expand during 2012–13 as the economy expands.

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Videoconferencing Equipment Spending Growth

The equipment component of the market is forecast to overtake the public room component in 2011.

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Videoconferencing Spending Upward Trend Continues

Overall market projected to grow at a compound annual rate of 8.3% from $2.1B in 2009 to $2.9B in 2013.

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Web Conferencing Spending

Growth for the entire forecast period will average 14.9% on a compound annual basis, with spending increasing from $1.55B billion in 2009 to a projected $2.7B in 2013.

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Slow but Steady Audioconferencing Growth

By 2013, service bureau spending will total an estimated $3.4B, up 4.1% on a compound annual basis from 2009.

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Overall Conferencing Spending

The market as a whole will grow at an estimated 8.2% compound annual rate. By 2013, spending will total an estimated $9B.

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Contact Center Spending

The overall contact center market will expand at a 3.2% compound annual rate during the next four years, rising to an estimated $10.1B in 2013 from $8.9B in 2009.

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Data Communications and Internetworking Recovery

Overall spending will expand from $84.1B in 2009 to an estimated $93.4B in 2013, a 2.7%compound annual increase.

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IP Virtual Private Network Opportunities

Spending on network-based IP VPN service will rise from $6B in 2009 to $11.7B in 2013, an 18.3% compound annual increase.

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More Customer-Premises Services

By 2013, leased line spending projected to total $13.45B, a 2.4% compound annual increase from $12.25B in 2009.

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Overall Data Communications Services Spending Rebounds

Beginning in 2011, a rebound in leased lines and faster growth in the IP VPN will help total data communication service revenue growth.

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Enterprise and the Environment

• Focus on Green Initiatives: – Growth in Conferencing Services– Reducing Data Center Energy Use– Managing Carbon Footprint– Sustainable Networks– Emergence of Smart Devices

• Motivation:– Public Service/PR– Cost Savings

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More on Other Sectors Soon

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Research Methodology

1. Reference unbiased, respected third-party sources2. Identify underlying economic, technological, regulatory

and competitive factors3. Develop models to quantify impact of factors on industry

revenues4. Create forecast scenario for each causative factor and

assign relative significance weight5. Apply proprietary mathematical models and algorithms to

compute range of prospective results6. Tune the results based on professional expertise and

institutional knowledge

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How To Order

TIA’s 2010 ICT Market Review & Forecast Mobile and Wireless Communications Chapter Is Available Today

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http://www.tiaonline.org/market_intelligence/mrf/index.cfm

TIA: A World-Recognized Authority

Since 1924, TIA has represented the global information and communications technology (ICT) industry Works through Policy, Standards, Environment, Intelligence and Networking3,000 TIA standards developed, including:

New Committee: Smart Communications DevicesData centers and Cat 5/Cat 6 cablingCell towers and CDMA technologyCALEA and P25Ethernet

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TIA Board of Directors

Recognized leadershipAdvances association mission

ADTRAN | Alcatel-Lucent | ANDA Networks | AttivaCorp | Cisco Systems | Ericsson, Inc. | GENBAND, Inc. | Graybar | Henkels & McCoy

| ILS Technology | Intel Corp. | Intersect, Inc.| LGE | Microsoft | Nokia Siemens Networks | Openwave, Inc. | Panasonic Computer Solutions

Co. | Powerwave Technologies| Qualcomm | Research In Motion |Sumitomo Electric Lightwave Corporation | Tellabs | Tyco Electronics |

Ulticom, Inc. | Wirefree

Advisors to the Board: FAL Associates | Orca Systems | Telcordia Technologies

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TIA’s Policy Agenda

Thank You!

Contact TIA atmsnyder@tiaonline.org

tiaonline.org

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