Because of a growing need to connect remote and mobile workers, medium-sized firms in the US have increased their outlay on telecom services and equipment and total spending is predicted to exceed $20 billion this year.
A new report from
In-Stat/MDR claims that mid-market companies, namely those with 100-999 employees, are looking to the future and have upped their investment in broadband, VPN and managed and wireless services.
The rush to connect remote and mobile workers, including telecommuters, branch office employees and mobile or travelling staff is helping to sustain growth with the provision of broadband in remote locations seen as a major driver of spending. In-Stat/MDR estimates that the average mid-sized firm will spend $233 on telecoms services and equipment in 2003, an increase of 6% on last year.
Looking further ahead, carrier-provided “utility” services, including managed services and VPNs, are expected to account for a greater share of telecom expenditure. This largely depends on broadband becoming widely available and cost-effective but the adoption of a new generation of services should lead to an incremental increase in average spend.
It is forecast that in 2006, medium-sized companies will spend around $25 billion on telecoms services and equipment. Wireless data services will continue to account for a significant proportion of telecom budgets (est. $7.4 billion in 2003) but the wireless voice market is expected to be worth $3.7 billion this year, rising to around $5.8 billion in 2006.
