Fed Telecom Spending To Soar - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure

Fed Telecom Spending To Soar

A new report predicts a spending increase of nearly 70% over five years in the Homeland Security Department.

The Homeland Security Department is going to spend heavily on telecom goods and services, according to an analysis by a market-intelligence firm of government spending. Information security and knowledge management will also see sizable spending increases.

A report by the firm Input predicts that Homeland Security officials will spend nearly 14% more annually on telecom and networking wares and services through fiscal 2008. According to the company, the department spent $623 million on telecom this year and will spend $1.05 billion in 2008—almost 70% more over the five years.

More than any other technology, Input says, telecom, which is embedded throughout the national homeland security strategy, represents the bridge that's forming between federal agencies and state and local governments. Input's report states that interagency communications and information sharing will require additional spending on data communications, networking, and professional services.

Increased spending by Homeland Security will propel overall federal telecom government expenditures during the next five years to a projected $17.3 billion, from this year's $12.5 billion, Input estimates, a 7% annual growth rate.

Though the largest percentage increase in telecom spending will come from Homeland Security, the Defense Department and its military branches will continue to dominate federal spending on telecom. Defense, according to Input, is more dependent on telecom services than civilian agencies because of its need to link worldwide bases and units. The combined telecom spending by the Defense Secretary's office and the four major service branches will increase to $9.3 billion by 2008, up 39% from $6.7 billion in 2003. During those five years, the Air Force will overtake the Army as the branch spending the most on telecom: $2.2 billion versus $2 billion in 2008.

Just behind Homeland Security will be the Transportation Department, with spending estimated to rise 31% over the next five years, to $733 million; Treasury, 37.1%, to $731 million; Energy, 32%, to $643 million; Agriculture, 42%, to $627 million; and NASA, 29%, to $558 million.

Input says MCI and AT&T will maintain the biggest share of the contracts, holding 16% and 10%, respectively, of the federal telecom market.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
10 Cyberattacks on the Rise During the Pandemic
Cynthia Harvey, Freelance Journalist, InformationWeek,  6/24/2020
News
IT Trade Shows Go Virtual: Your 2020 List of Events
Jessica Davis, Senior Editor, Enterprise Apps,  5/29/2020
Commentary
Study: Cloud Migration Gaining Momentum
John Edwards, Technology Journalist & Author,  6/22/2020
White Papers
Register for InformationWeek Newsletters
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Slideshows
Flash Poll