This IDC study provides an update and analysis of the carrier Capex capex market in Japan. Market trends that had had a significant impact on carriers' CAPEX capex strategies in 2007 include FTTxfiber to the "x" (FTTx) adoption, TDMtime-division multiplexing (TDM) legacy to IP/next-generation network (NGN) migration, on-demand service development, and TCOtotal cost of ownership (TCO) reduction requirements. Professional services, wireless infrastructure, and network management accounted for the largest Capex capex segments in 2007. Data transport, optical transmission, and next next-generation wireless mobile infrastructure, and broadband wireless Capex capex categories are expected to drive growth during the forecast period ending 2012.

"Rigid carrier/equipment vendor relationships are the norm for most carrier Capex capex categories; and foreign equipment and IT vendors will most likely continue to struggle in the Japanese market. However, at the same time, the over-dependence of local vendors to NTT and other leading local carriers may weaken the competitiveness of local vendors in overseas markets. As such, major local vendors should actively explore new opportunities overseas for standards based products. In addition, foreign vendors should leverage their scale and advanced technologies to differentiate themselves in the local market," says George Hoffman, Group group manager, Communications Research, IDC Japan.