Telecoms Operators Upping Capex Spending in 2013

  • Infonetics Research
CAMPBELL, CA - Excerpts released from market research firm Infonetics Research from its "Service Provider Capex, Revenue, and Capex by Equipment Type" report, predict that capex is on track to be up close to 4 percent this year led by Asia and North America.

The report tracks telecom operator revenue and capital expenditures (capex) by operator type, region, and equipment segment and provides insight into telecom spending trends.

"With three quarters of the data in and a careful review of carrier investment plans for each major world region, overall telecom service provider capex is on track to be up close to 4 percent this year led by Asia and North America, and 2013 is looking bright for all regions," says Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

Téral adds: "With investment plans out from AT&T and Deutsche Telekom, combined with the plans of a long list of major and smaller operators around the globe, we can safely say that 2013 and 2014 will be positive capex years, which is good news for vendors. Deutsche Telekom's $40-billion, 3-year investment plan announced this month will help lead a return to investments in the EMEA region. Service providers have no choice but to invest in their networks now; some have been restricting capex for so many years that they are experiencing network outages, unable to handle exploding traffic. There
is very high demand for telecom services everywhere, particularly for mobile broadband.

CAPEX Report Highlights

  • Telecom capex increases in 2012 are being driven primarily by video and wireless infrastructure investments

  • Global service provider revenue is on track to reach $1.9 trillion in 2012, up 4 percent from 2011

  • While incumbent carrier capex on the whole is flat to slightly down this year, independent wireless operators, competitive operators, and cableoperators are increasing capex, led by the independent wireless operators,increasing capex 12 percent this year

  • Spending on every type of telecom equipment except optical and TDM voice will be up this year

  • The major areas of investment through 2015 include fiber-based wireline broadband, 2G mobile network capacity expansion, 2G migration to3G, and migration to LTE projects

  • Asia Pacific will account for about 1/3 of global service provider revenue by 2016, propelled by China Mobile, the world's largest mobile operator by revenue and subscribers

  • Wireless pure-play operators will account for nearly 1/3 of alltelecom capex by 2016, driven by 3G and LTE rollouts in China, India, and Africa



See yesterday's post, "Global Telecom CAPEX Hampered by Funding Problems" from The Insight Research Corporation.

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