Satyam Kumar also contributed to this note

The communications equipment industry has experienced solid market growth over the past several years, after recovering from sharp spending cutbacks in 2001 and 2002 by the service providers. Over the years the growth in communication equipments industry has been led by its primary customers, the telecommunications service providers. However, if one takes a look at the recently concluded Sep07 quarter there are some interesting trends to watch for. Current growth in the industry is being fueled by the enterprise/government customers (Exhibit 1) as enterprises look to embrace more web-based business models and upgrade their existing networks.
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