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Federal Communications & Network Services Market 2007 – 2012
INPUT, Jan 2008, Pages: 32


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In addition to the Federal IT Market Forecast, which forecasts the various product and service markets for the entire federal IT market annually, the report forecasts the addressable market for the individual category markets for those products and services. This report provides strategic and forecast analysis and data for the Federal Communications and Network Services market based on the addressable IT budgets for the five-year forecast period 2007-2012.

Description
In the US federal government, information technology and communications technology are inseparable. Communications networks are fundamental enablers for nearly every IT program. Demand for vendor-furnished communications and network services by the US federal government will increase from $17.6 billion in 2007 to $22.4 billion in 2012 at a compound annual growth rate of 4.9%. The critical role data communications plays in agency IT programs will continue to drive growth in the market.

This report analyzes the trends in federal communications and network services using the FY 2008 IT budget request released by the Office of Management and Budget (OMB) coupled with in-depth knowledge and understanding of federal IT procurement and long-range IT plans to forecast spending trends over the next five years. When forecasting this market, the report focuses on trends related to technology, acquisition processes, and regulations that will shape the size and direction of this marketplace.

Key market forces currently shaping this market include:
-Wireless Networking
-Communications Interoperability
-Information Sharing
-Infrastructure Refresh and Modernization
-Transition to GSA Networx

After a period of relatively unbridled increases in federal IT expenditures in the first years of this century, the market entered a cooling off period with spending slowing to historical lows from 2004 through 2006. This cooling off was due to a number of factors: the economy overall, the high costs of the War on Terror and protecting the homeland, pressure to balance the budget, and agencies’ struggles with project management. The federal IT market began a slow but steady rebound last year and federal IT spending growth has begun to resume historical norms. It is expected that the overall market to grow at a more normative rate over the forecast horizon of 2007 to 2012.


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