Input: Fed telecom market could hit $22B by 2011
- By Michael Hardy
- Oct 05, 2006
The federal government will continue to spend a healthy amount on telecommunications in the next five years, according to market research firm Input.
In a report released today, Input projects that federal spending will reach almost $22 billion in 2011, after growing at a compound annual rate of 5 percent, starting in 2006.
Input describes telecom as "one of the few bright spots" in the federal market.
Homeland security initiatives and the Defense Department's network-centric warfare effort will account for a significant amount of the spending, according to Input. Meanwhile, civilian agencies trying to make their workforce more mobile will pump money into wireless communications and mobile network connectivity.
“There is no question that telecommunications spending will remain strong in the federal marketplace over the next several years,” said James Krouse, acting director of public-sector market analysis at Input, in a written statement. “But with the advancement of new technologies, introduction of new vendors and continued merger and acquisition activity, the competitive landscape will change significantly.”
Input expects wireless spending to show the strongest growth during the five-year period. However, traditional telecom firms and systems integrators will remain strong, too, according to the firm's predictions.