Trends in the communication test services market
27 October 2010
News
Telecoms, Datacoms, Wireless, IoT
Because standards in the communications market are constantly evolving, triggering the improvement of test equipment and corresponding services, Frost & Sullivan believes suppliers should improve their service portfolio to address volatile market conditions and the subsequent needs of end users.
New analysis from the market research firm has found that the market earned revenues of $472,2 million in 2009 and estimates this to reach $677,9 million in 2015. The end users covered in this research service include network equipment manufacturers (NEMs), service providers (SPs) and enterprises.
“SPs opine that the demand for test services in wireless technologies is greater than that of wireline technologies, due to their complexity and susceptibility to problems,” says Frost & Sullivan research analyst Prathima Bommakanti. “Likewise, the need for test services is expected to increase as wireless networks continue to become more complicated.”
Due to the introduction of long-term evolution (LTE) and worldwide interoperability for microwave access (WiMAX) technologies in the network, the overall complexity of networks is escalating. This is particularly evident in the operation stage and during the transition of technology in the network. Moreover, the deployment of LTE and WiMAX is likely to increase the service requirements of operators as they are expected to incorporate mobile broadband, video-on-demand and other high-speed services that will boost the revenues for network operators.
One of the most consistent trends has been to offer voice over Internet protocol (VOIP), data centre and Internet protocol television (IPTV) instead of an integrated triple-play network. However, with SPs transitioning from separate voice, video or data services to integrated triple-play services, there is a need for equipment and services to test and monitor networks that supply voice, video and data simultaneously.
Despite promising potential, the economic downturn significantly hindered the growth of the total world communication test services market. Capital budgets remain tight, as SPs, NEMs and small and large enterprises attempt to generate more revenues out of their existing networks, creating a delay in their purchasing decisions. Likewise, vendors should assure the return on investment (ROI) for services offered, as end users have reduced capital expenditure (CAPEX)/ operating expenses (OPEX) budgets.
For more information contact Patrick Cairns, Frost & Sullivan, +27 (0)18 464 2402, patrick.cairns@frost.com, www.frost.com
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