New research released this week shows the Asia Pacific is leading worlwide spending on telecommunications and data network gear.
According to Infonetics Research, worldwide sales of both telecommunications and data-network gear rose nine percent in 2006 from the previous year.
The year's total spending went over US$123 billion worldwide, and it is due to go higher, rising another 20 percent to reach $148 billion in 2010, Infonetics said.
Carriers and corporations alike are investing because they want to add voice and multimedia applications traffic to data networks.
Enterprises are also starting to add advanced capabilities for security and traffic management. New multimedia Web applications, particularly streaming video, have been cited in burgeoning Internet traffic.
IPTV (Internet Protocol television) will play a growing role in the buildout, Infonetics predicted.
IPTV equipment will double its share of the total networking market between 2006 and 2010, the researchers said. IMS (IP Multimedia Subsystem), a technology to deliver the same services over different kinds of networks, will be another fast-growing field.
In the total world telecommunications and data-networking market studied by Infonetics, Cisco is the biggest vendor with 20 percent, followed by Alcatel-Lucent SA.
The fastest growth in spending is happening in the Asia-Pacific region, which made up 28 percent of worldwide revenue in 2006.