"The transformation of telecom spending continues unabated," said Bryan Van Dussen, In-Stat analyst. "The relentless march toward IP-based networks, the unequivocal adoption of mobile solutions, and the pervasiveness of broadband have changed the face of business networks forever."

A recent report by In-Stat found the following:

• Mid-sized firms accounted for 12.4 percent, or US$24 billion, of total US business telecom spending in 2005; these numbers will reach $33 billion and 13 percent of the total US business market by 2009.

• Small business spending on Internet access will grow to $8.2 billion by 2009, up from $4.4 billion in 2005, largely due to adoption of DSL and higher bandwidth services.

• Spending on wireless data services will outpace all other categories in the SOHO segment, growing to nearly $2.2 billion in 2009, up from $0.47 billion in 2005.