T he telecommunications market is a service-oriented market.
Equipment is just one piece of an increasingly complex service package.
The overwhelming need for infrastructure and new consumer devices will drive equipment revenues throughout the forecast period. Many services will continue to grow, spurred by deregulation, changes in work and living habits and widespread use of the Internet. Solid revenue growth will actually be hindered by price pressures and low margins. Equipment and services revenues will feed off each other, with new service developments demanding upgraded infrastructure, which will supply companies with the possibility of other services, and so on. Part of these revenues also will come from reparative measures due to Y2K, as businesses and consumers seek to fix or replace any failed systems.