Report: DHS, DOD Push Telecom SpendingReport: DHS, DOD Push Telecom Spending

Homeland security initiatives and key Defense Department projects will drive federal telecommunications spending over the next five years, according to a report released Thursday by government market research firm Input. It predicted federal telecom spending will reach $22 billion by fiscal year 2011.

Spending on wireless communications will represent the most aggressive portion of growth in the sector, which should increase overall at a rate of about 5 percent a year.

"With significant federal budget dollars being dedicated to improved national integrated communications, the telecom market will remain vibrant and dynamic over the next few years with heavy competition for those dollars," said James Krouse, acting director of public sector market analysis at Input, in a statement.

Telecommunications segment is expected to be a rare bright spot in federal IT spending over the next few years with most other IT areas to decline or show slower growth, Input said.