Federal Spending On Telecom To Continue Growing - 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

Federal Spending On Telecom To Continue Growing

The Department of Homeland Security and E-government are among the drivers that will boost federal telecom spending, according to the government market-research firm Input, which released a study Wednesday.

Federal spending on telecommunications is expected to expand to nearly $21.4 billion in fiscal year 2010, driven heavily by e-government and Presidential Management Agenda objectives, according to Input, which released the market intelligence study Wednesday.

Chris Campbell, senior analyst, federal market analysis, said in an interview that the year 2006 will be the switchover year in which leased data line spending will surpass leased voice line spending for the first time.

He said data lines will record a compound annual growth rate of 7 percent versus 5 percent for voice lines over the period. Data line spending will grow from about $5.6 billion annually in 2005 to $7.8 billion in 2010 while voice will move from $5.4 billion in 2005 to $7.0 billion in 2010.

Wireless communications will boom in the period, Campbell said, adding: "No individual segment of the telecommunications market has seen as explosive growth as the wireless segment. The advantage afforded to agencies by being able to stay in constant communication with key personnel, whether they are on the battlefield or in a remote office, greatly enhances an agency's ability to perform its mission."

Campbell said wireless spending should grow at almost twice the rate of spending for the overall federal telecom market, jumping from $1.9 billion in fiscal year 2005 to $3.3 billion in 2010. "But wireless can't be broken down into separate subcategories," he said. "(A lot) of wireless is wrapped up into larger expenditures."

One area slated for telecommunications growth is the Department of Homeland Security. A major overhaul of the agency began to be outlined this week by Homeland Security Secretary Michael Chertoff. Campbell said he had been predicting steady telecommunications growth for DHS, but he indicated the numbers could change as the agency is overhauled.

"I expect a lot of (DHS) programs will be on-hold during the reorganization," he said. "We'll just have to wait and see."

As for the impact of President Bush's Presidential Management Agenda, outlined shortly after the President first took office, the analyst said telecommunications providers are involved in expanding the use of IT among government agencies and IT as it is used to improve communications with the nation's citizens.

"New technologies, new competitors, and a slew of mergers and acquisitions are changing the overall landscape of a market that historically has been rather static and controlled by a limited number of industry heavyweights," Campbell said. "Now, even systems integrators are emerging as dominant vendors for market share in 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
Commentary
Rethinking Technology Road Maps for the Second Half of 2020
Andrew Froehlich, President & Lead Network Architect, West Gate Networks,  7/2/2020
Commentary
The Best Way to Get Started with Data Analytics
John Edwards, Technology Journalist & Author,  7/8/2020
News
IT Trade Shows Go Virtual: Your 2020 List of Events
Jessica Davis, Senior Editor, Enterprise Apps,  5/29/2020
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