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INPUT Expects Communications and Network Services Market to Reach $22.4 Billion By 2012

RESTON, Va., Jan 31 PRNewswire — Spending on communications and network services by the U.S. federal government will grow 4.9% annually from $17.6 billion in 2007 to $22.4 billion by 2012, according to a recent report released by INPUT, the authority on government business. The report suggests that a key area of growth will come in the wireless market segment.

"Civilian and defense agencies alike view wireless as a key element of their mission capability," says John Slye, principal analyst, federal industry analysis for INPUT. "We expect the wireless segment to grow by over 75% over the next five years to a nearly $4 billion market," Slye added. The report states that vendors can expect the government to focus on bandwidth, security, and interoperability for their wireless communications needs.

Another key driver impacting the market mentioned in the report is the GSA Networx contract. "While we have seen limited activity though Networx since it was awarded nine months ago, we expect this to pick up as the September 2008 deadline for transition funds approaches," commented Slye. "We expect a surge in task orders in the second quarter as program management offices come online for the rush to meet the transition funds deadline," stated Slye.

The report suggests that telecommunications initiatives can be an area of opportunity during periods of political transition and programmatic uncertainty. "Telecom contracts can be a counter-cyclical play, with less risk, particularly during transitions when existing mission programs might stall and budgetary dollars switch to apolitical infrastructure projects," noted Slye. "Know the agencies' wish list for telecom, especially for wireless and broadband upgrades, and be ready to move fast when other opportunities are delayed," Slye added.

Additional factors impacting the market discussed in the report include Voice over IP, interoperability, the transition to IPv6, infrastructure modernization and information sharing.

INPUT's Federal Communications & Network Services Market 2007 - 2012 industry report is available on INPUT's website at http://NetCom.input.com.

About INPUT

INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,300 member organizations, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit http://www.input.com or call 703-707-3500.

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SOURCE INPUT