WIRED communications infrastructure spending will rise in 2007 to its highest level since 2002, with most of the additional global spend attributable to new IPTV investment.

California-based research group iSuppli says telecommunications companies will spend nearly US$41 billion on equipment this year, a modest rise of 1.6 per cent. The growth in total equipment spending is small, and represents a slowdown compared to the 10.7 per cent increase in 2006 and 8.3 per cent in 2005. But with telco revenue growth expected to increase on ly marginally this year, iSuppli says spending increases have been directed at new revenue opportunities. “The major reason for the slowdown is focused spending and a ‘pay-as-you–grow’ strategy among telcos,” according to iSuppli’s principal analyst for IPTV, broadband and digital home, Steve Rago. “The marginal increase in 2007 spending is being driven largely by telcos’ purchases of equipment to deploy Internet Protocol Television (IPTV) services. iSuppli estimates $9 billion will be spent on IPTV-related communications equipment in 2007.” The major motivation for companies to invest in IPTV infratstructure is the flagging fortunes of the their core voice communications businesses, Mr Rago said.