Despite Telecom Slump, Wire and Cable Expenditures Grow

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BOONTON, NJ. March 27, 2002:

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While the telecommunications industry is mired in a vicious downturn, suppliers of wire and cable to the industry will realize continued growth through 2006. The telcos will continue purchasing these and other core elements to support their network upgrade plans, says a new report from Insight Research. Wire & Cable: Harnesses, Fiber, Copper Wire, and Coax 2001-2006 reveals that telecom companies will be spending $33.4 billion on core infrastructure components (including wire and cable) by 2006, compared to the $25.3 billion spent during 2001. 

According to the research study, expenditures for wire and cable by telecom companies will grow to become 28.3 percent of the overall core infrastructure components expenditures between 2001 and 2006. While growth in the wire and cable segment, including cable harnesses, fiber-optic cable, copper wire, and coax, will be modest in terms of the go-go growth rates enjoyed by the telecom industry during the late 1990s, spending on these components will continue, despite the current state of the overall telecom industry. Growth on any level is inevitable, since wire and cable buildouts and upgrades are necessary to support basic telecommunications services and cannot be delayed without drastic impacts on network reliability. 

"While the spending patterns in many equipment sectors are grim, the outlook for wire and cable seems to buck the trend," says Insight president Robert Rosenberg. "The wire and cable segment participates in a positive pattern we are observing in many core component areas of telecom. Capital expenditures on the basics needed to keep the network up and running are still being made, even in the face of industry-wide spending cutbacks." 

Wire & Cable: Harnesses, Fiber, Copper Wire, and Coax 2001-2006 forecasts expenditures for cable harnesses, insulated fiber optics, copper wire, and coaxial cable between 2001 and 2006 by US telecom network providers. 

A free report excerpt, table of contents, and ordering information is online at www.insight-corp.com/wire.asp. 

Telecom Power Plants and Power Systems 2001-2006

Donna Savino

at Insight Research