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  1. Is Telecom Innovation Dying?Ovum principal anlsyat Matt Walker released a provocative report entitled, Is telecom innovation at risk? In it he argued that the lack of venture funding for network-equipment startups is endangering new advances in telecom infrastructure, because most game-changing innovation springs from the small startup level, not from the major, established vendors. Although telecoms vendors continue to spend in the range of 13 14 percent of their revenues (on average) on R&D, VC funding of telecoms vendor start-ups has fallen steadily in the last few years, Walker stated. Despite the fact that telecom-related patent filings continue to rise, We worry that current trends in venture capital and vendor R&D threaten innovation. Walker was writing specifically about the telecom vendors that design, build and hopefully improve the guts of the telecom networks, he told VON/xchange in an e-mail, because they are still the central players in this story. Nevertheless, his findings raise a broader question: Where will the next generation of innovation in telecom come from?That question was underlined by the lackluster performance of the IPO earlier this month by BroadSoft, which is one of the most innovative players in the next-generation, IP communications vendor space. If Wall Street doesn t like companies like BroadSoft, and if, as Liz Kerton, president of the Telecom Council of Silicon Valley, has pointed out, Silicon Valley VCs are loath to invest in any startup with the word carrier in its business plan, who s going to fuel the next wave of communications innovation?

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