Telco equipment vendors looking for good news will be buoyed to hear spending by European ILECs, CLECs and wireless service providers are expected to rise 9% this year, according to Infonetics Research. There will be aggressive spending on access aggregation equipment, IP/MPLS routers and voice equipment. While 9% may not seem like a big increase, it's large – relatively speaking – given the low-single digit growth and negative growth seen from 2001 to 2003. Infonetics said that European SPs are now spending 13% of revenue on capex, and this ratio will continue through 2005.
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