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 This amount included product, network, and IT-related service spending. And according to the report, network equipment providers accounted for approximately 60 per cent of that total.
Key findings of the study include:
? Worldwide telco services revenues were $US65 billion in 2007, up 17 per cent from 2006
? Services revenues were more than 20 per cent of total company revenues for top tier network infrastructure vendors as a group
? Average operating margin on services was 13 per cent, versus 5 per cent for hardware
The report also noted the capacity glut of the past several years, combined with the rise of Chinese vendors have made it difficult for large incumbent network equipment providers to make money on products.