Fed telecom spending to reach $16 billion by 2007

Federal spending on telecommunications products and services will grow 8 percent annually from $10.8 billion in fiscal 2002 to $16.1 billion in 2007, according to estimates by a market research firm specializing in technology and government markets.

Input Inc. reported telecommunications spending in the federal government is being driven by four primary market trends: homeland security, e-government, Defense Department force transformation and telecommuting.

"Of these four market trends, homeland security will have the greatest impact on near-term telecommunications spending, while e-government will become more significant in the later years of our forecast," said Payton Smith, manager of public-sector market analysis services at the Chantilly, Va., firm.

According to the Input report, the departments of Defense, Transportation and Justice stand out as the three agencies in which homeland security initiatives will have the greatest impact on telecom spending.

The report shows that spending will achieve the highest growth rate in professional services, including consulting, design and integration services.

"The emphasis on interoperability represents a significant integration challenge for federal networks and communications infrastructure," Smith said.