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News Release from: Frost and Sullivan
Edited by the Electronicstalk Editorial
Team on 06 November 2006
Convergence to IP necessitates test
services
Revenues in world communication test services markets totalled $0.69 billion in 2005 and can reach $1.90 billion in 2012.
Although test services were underestimated in the past by service providers, carriers, network equipment manufacturers and other end users, they are now gaining momentum due to the introduction of a number of new and innovative communication technologies As the baby boomer generation retires taking along legacy knowledge, there is a tremendous need for next generation networks (NGNs) knowledge and expertise
This article was originally published on Electronicstalk on 28 Jul 2006 at 8.00am (UK)
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Hence, with the lack of NGN technology experts in the market place there exists huge potential for test equipment vendors to promote their services in this evolving space.
New analysis from Frost and Sullivan - "World communication test services markets" - reveals that revenues in this market totalled $0.69 billion in 2005 and can reach $1.90 billion in 2012.
"The onset of telecom convergence, also referred to as 'triple play', is likely to be a major influence on the growth of the world communication test services markets", notes Frost and Sullivan Research Analyst Olga Yashkova.
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"Convergence to IP is expected to necessitate more communication test services as service providers, carriers and private enterprises will need to validate if they can run voice and video traffic, traditionally handled on separate networks, on one IP platform".
This apart, the growing global mobile subscriber base, particularly in developing countries, is also likely to add to the demand for communication test services.
The number of mobile subscribers was likely to touch the 2 billion mark in 2005 and countries such as China and India are reporting the most number of new subscribers.
While many European countries are also reaching the 100% penetration figure, global penetration is at 28%, indicating considerable potential.
However, customer perception of the value of test services and willingness to spend on the same are crucial challenges that threaten to restrain the growth of the global communication test services market.
Customers want to spend less while incorporating more bandwidth, leading them to look for less expensive test services and equipment.
Moreover, there is still a general perception that testing services are optional and there is no need for any kind of on-site expertise, thereby making it the task of test equipment vendors to promote the requirement for testing services.
"The communications market has seen huge changes in terms of technology and keeping pace with them is likely to challenge the development of the communication test services market", says Yashkova.
"In addressing this scenario, test service vendors will need to develop solutions to provide test services for multi functional platforms in a timely manner in order to meet outstanding customer needs and remain ahead of competition".
Overall, the demand for communication test services is likely to continue to increase, particularly with the development of new NGN technologies.
Service providers offer significant potential for the implementation of testing services and training and test service vendors will do well to target them, as they are the largest users of communication test services and training services.
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