Next Generation Networks Will Receive Total Capital Investment of More than $1 Trillion by 2015


LONDON - February 8, 2007

According to a new ABI Research Brief, network operators are slowly beginning to roll out all-IP next generation networks (NGN). The move to an Internet Protocol-based infrastructure is a natural evolution for the fixed network as broadband services, including Voice over IP, take over from the Public Switched Telephone Network .

Mobile networks have a parallel evolution to IP (although at a slower pace), but the standards work is accelerating. By the end of 2007 there will be full NGN standards for fixed and mobile networks allowing IP-based services to be deployed on NGN, a process that ABI Research analysts expect to be largely complete by 2015 for a total cumulative investment of more than $1 trillion.

"As we move to the end of the decade, bandwidth-hungry services such as IPTV will need an IP infrastructure to support them. Operators will also want to control operating costs by moving all services over an IP network," says ABI Research analyst Ian Cox. "This will enable deployment of service delivery platforms and IMS (IP Multimedia Subsystem) in the network, streamlining operations and allowing new services to be introduced quickly."

For users, says Cox, NGN provide better and more compelling services and deliver higher data rates, for video and rich voice sessions.

For operators, NGN allow services and transport in the network to be separated and to evolve independently. This will speed up the development of content and services, to the advantage of the whole industry.

"Next Generation Networks" examines the market for NGN on fixed and mobile networks. It includes a review of the current market and estimates the size of the opportunity for equipment vendors. It forms part of ABI Research's Wireless Infrastructure Research Service.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in broadband and multimedia, RFID & contactless, M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies. For information visit www.abiresearch.com, or call +1.516.624.2500.