Skip to main content

EMEA Telecoms Carrier Capex Forecast

Capital expenditures of telecom service providers in the EMEA (Europe, Middle East, and Africa) region totaled 59.2 billion euros in 2006, up 7 percent from 2005, and are projected to increase 8 percent to 63.8 billion euros in 2010, according to Infonetics Research.

"Major incumbents and large service providers in the EMEA region have made it clear that capex will be allocated only to projects that have been identified as revenue growth engines, and all public service providers continue to keep an eye on cash flow," said Infonetics analyst Stephane Teral.

"Deutsche Telekom and France Telecom accounted for about a quarter of all EMEA carrier capex in 2006 -- a 2 billion euro increase over 2005. Both companies are coping with fierce competition in their home turf and have to invest in new broadband-based infrastructures and new types of services such as FMC to respond to the competition," Teral

Overall, EMEA players acknowledge the tough competitive situation they are facing, but remain cautiously optimistic about potential single-digit growth to be generated by new bundles of multimedia services, including online gaming, the report shows.

The Infonetics report highlights include:

- Over the 5-year period from 2006 to 2010, EMEA service providers will spend a cumulative 309.6 billion euros on capital expenditures.

- The combined revenue of all public EMEA carriers (incumbents, competitors, wireless) is up 3 percent in 2006 to just over 400 billion euros.

- Of the capex going to telecom and datacom equipment, the top 3 investment areas for EMEA carriers in 2006 were voice, mobile RAN, and optical equipment.

- Many EMEA providers expect spending in 2007 will increase to sustain developments in 2 major growth areas: broadband wireless and wireline services.

- The number of broadband subscribers in the EMEA region will nearly double between 2006 and 2010.

- The number of mobile subscribers in EMEA is forecast to reach 1.4 billion in 2010.

Popular posts from this blog

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ