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Broadband hardware market to shrink by a third

by on27 May 2009

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That is $3.2 billion over the next three years

 

US telcos are canceling broadband hardware contracts like there is no tomorrow and analysts and people in the know think that spending will fall by 36 per cent over the next three years. Data from the Telecommunications Industry Association, US spending on access equipment will fall 27 per cent this year and continue two years after that before springing back to life.

Over all, the domestic telecom hardware market will decline $3.2 billion. The exeption is Verizon's $23 billion FiOS investment but even that is only scheduled through 2010 after which the carrier may seriously slow spending.

Fibre-to-the-premises (FTTP) equipment accounted for half of all US broadband equipment spending last year and a huge chunk of that was thanks to Verizon investment.

This could be bad news as in three years Internet capacity problems are likely to be showing in some parts of the US.

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