Telecom Association Predicts Strong Increase in Corporate VPN Spending this Year

The Telecommunications Industry Association (TIA) is predicting that corporate spending for VPN services in North America will rise by 43% in 2003. In 2002, the North American VPN market totaled $11.7 billion, consisting of $9.9 billion in services revenues and $1.8 billion in equipment spending, according to the recently released 2003 Telecommunications Market Review and Forecast, an annual TIA publication. Last year, businesses increased spending on ATM and Frame relay services by 38.7% and 19.3%, respectively, over the previous year. The TIA report predicts ATM services spending through 2006 will increase at a 23% CAGR while frame relay services will grow by 11.7% CAGR in the same period, with both outpacing the leased-line market CAGR of only 2.4%.
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