EL SEGUNDO, CA – Telecom OEMS are expected to spend nearly $41 billion on equipment this year, the highest annual level since 2002, says iSuppli. Spending will be up 1.6% from 2006, after rising 10.7% in 2006 and 8.3% in 2005. iSuppli estimates $9 billion will be spent on IPTV-related communications equipment in 2007. Last year, OEMs spent primarily on access equipment. In 2007, iSuppli expects carriers to continue access-equipment spending at 2006 levels, while significantly increasing investments in their core networks. Global IPTV subscribers will soar to 105.8 million in 2011, rising at a 98% CAGR from 3.4 million in 2006, iSuppli predicts. Telecom OEMs’ IPTV budgets will have to grow to account for 20% of their total capital spending by 2011, says the firm. The only region exhibiting spending declines is Japan, where fiber-to-the-home (FTTH) deployment has slowed. However, Japanese spending should recover during the next few years.