Spending on packet-switching equipment by Asian telecommunications networks may total US$8 billion in three years and will be one of the key engines for recovery in the telecoms hardware industry, according to Nortel Networks executives.
Enis Erkel, Nortel's regional vice-president for next-generation networks, said of the US$8 billion spending, at least US$2 billion would be in China. By 2005, the mainland would account for about 15 per cent of the packet-switching spending globally.
Most telephone networks now depend largely on circuit-switching.
Sue Spradley, president of Nortel's next-generation network division, said the transition to packet-switched networks would take about 15 years.
Speaking in Hong Kong yesterday, Ms Spradley said Asia was the most important region for this development.
Continued deregulation, heated competition and establishment of new networks have prompted telecoms equipment providers to continue to seek opportunities in Asia.