Fed telecom booms

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 Input Inc., a Chantilly, Va., market research firm.

Telecommunications spending is being driven by four 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 Input.

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 said spending will grow fastest for professional services, including consulting, design and integration services.

of Total
Defense $2.1 billion $3.2 billion 20%
$1.4 billion $2.2 billion 13%
Army $1.2 billion $1.8 billion 11%
Navy $1.2 billion $1.6 billion 11%
Treasury $635 million $935 million 6%
yes"> Transportation
$526 million $841 million 5%
NASA $524 million $711 million 5%
Justice $438 million $648 million 4%
and Human Services
$378 million $593 million 4%
Agriculture $305 million $488 million 3%
Source: Input

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