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Why Telcos Must Rethink Their Approach to Data Management

    Online News published in DMReview.com
October 24, 2001

The fortunes of the telecommunications industry won't improve until providers figure out how to make a profitable move into data management.

According to a new report from Insight Research Corp. in Parsippany, NJ, it's not a capacity glut that hurt the telecom business in 2001, but the industry's inability to quickly transition to a business model oriented around data.

"Voice services are still the primary generators of revenue for service providers throughout the world, even though the growth of data traffic and demand for broadband services continues unabated," says Insight Research President Robert Rosenberg. "We forecast that data traffic will continue to double every 12 months, despite the bumps from the current telecom recession."

Insight Research suggests that the prospects for communications services and equipment in the short-term are decidedly mixed, but over the longer term, several segments, most notably those related to data services, will enjoy more than 50 percent annual growth.

Some of these high-growth segments include:

  • VPN/IP data services
  • Voice over packet services
  • US signaling gateway equipment
  • Customer network management services and public wireless data network subscribers.
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