Growth of Professional and Technical Services Marketis Expected to Outstrip Double-Digit Growth...

Business Editors/Hi-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--March 3, 2000

Overall spending on services in support of voice and data equipment is projected to expand at a compound annual rate of 19.5 percent through 2003 to reach $237.1 billion, more than double the projected

$112.6 billion equipment market for 2003, according to findings from the recently released 2000 MultiMedia Telecommunications Market Review and Forecast, a joint publication produced by the MultiMedia Telecommunications Association (MMTA) and the Telecommunications Industry Association (TIA).

Spending on services in support of voice and data communications systems for enterprise end users totaled $116.4 billion in 1999, an 18.1 percent increase over 1998.

According to John Ahearn, vice president of independent distribution for Siemens Business Communications and vice-chairman of the MMTA Board of Governors, "End users don't want to have to be their own integrators, as the figures in this publication clearly suggest. Network service providers [NSPs] and manufacturers increasingly rely on channels that offer professional integration and consultation capabilities. Channel companies that step up to the task capture their share of the rapidly expanding professional services market. Those that do not can't count on retaining their share of the $83 billion technology sales market."

Other major findings in the Market Review and Forecast regarding the services market include:

-- Professional and technical services represent the largest and
fastest-growing component of the services category, escalating 22.5 percent to
$73.8 billion in 1999. Professional services provide value-added services
consisting primarily of network-integration services, consulting and product
services, and time and materials services;

-- Spending on integration and support services for data communications at
$92.4 billion accounted for 79.4 percent of the total for 1999, with services
in support of voice communications accounting for the remaining $24 billion;

-- Growth of services spending to support data equipment is projected to total
$192.8 billion in 2003 while spending to support voice equipment is projected
to reach $44.3 billion in 2003;

-- Field maintenance and repair was the second largest component of the
services category at $31.1 billion, but also was the slowest growing with an
increase of 8.3 percent;

-- Spending on logistics and other support services totaled $11.5 billion in
1999; and

-- A major driver of the market is that customers now have more choices for
equipment and NSPs, which produces opportunities for professional service
providers as system integrators, third-party service providers and repair
depots.

In addition to the segment-by-segment statistical breakdown and analysis of the U.S. telecommunications industry (and highlighted growth areas in international markets), this year's Market Review and Forecast also includes new discussions of applications/product migration from the enterprise to network services, data for spending on professional services in key international markets, distribution of call-center spending by application and market outlook for unified messaging.

To obtain press copies of the book, please call (703) 907-7723 or email kstevens@tia.eia.org.

TIA is a full-service national trade organization with membership of 1,000 large and small companies that provide communications and information technology products, materials, systems, distribution services and professional services in the United States and around the world.

The association's member companies manufacture or supply virtually all of the products used in global communications networks. TIA represents the telecommunications industry with its subsidiary, the MultiMedia Telecommunications Association, in association with the Electronic Industries Alliance. More information on TIA can be found on the association's Web site at www.tiaonline.org.

MMTA is driving the convergence of communications and computing business applications that has opened up a wealth of new opportunities for distributors, value-added resellers, manufacturers, software developers, integrators, carriers and corporate users.

Providing an open forum for the development of global markets, MMTA strives to ensure a high level of competency and creativity in the delivery of new technology-based solutions to the business community. MMTA is a subsidiary of the Telecommunications Industry Association (TIA). More information about MMTA can be found on the association's Web site at www.mmta.org.