Infonetics Research released the second edition of its 2009 telecom Service Provider Capex, Opex, ARPU, and Subscribers report, which features analysis on how current economic conditions are impacting telecommunications markets -- by region and equipment segment.
"Global telecom service provider capital expenditures hit a plateau in 2008, marking the end of a 5-year investment cycle and the beginning of a 3-year disinvestment cycle, albeit a less dramatic one than what followed the great telecom crash of 2000," predicts Stephane Teral, principal analyst at Infonetics.
Capex will bottom down in 2010 and a new investment cycle will start in 2011, driven by 3G rollouts in India and Central and Latin America, the start of 3G rollouts in Africa, and a ramp-up in LTE deployments in Australia, Brazil, Western Europe, Japan, and North America.
Highlights of the Infonetics market study include:
- Worldwide, service providers spent $305 billion in 2008 on capital expenditure projects, such as network infrastructure upgrades.
- Global capex is forecast to decline at most 6 percent in 2009, mainly due to a significant capex shakeout in the Middle East and Africa, a weakening U.S. dollar, expected declines in the Brazilian real and Mexican peso, and delays in U.S. broadband stimulus funding.
- Infonetics anticipates a year-end bump up in capex, which could bring the overall capex decline in 2009 to less than 6 percent.
- Optical network hardware is a bright spot in today's tightened capex environment, with decent single-digit percent spending growth expected in 2009, despite currency devaluations.
- Mainly due to currency effects, worldwide service provider revenue is forecast to decline only very slightly in 2009, to $1.67 trillion, driven by mobile communication services, as consumers continue to hold on to their mobile services during tough economic times.
- Mobile infrastructure will continue to dominate total global telecom and datacom spending, followed by voice equipment.
- The world's 10 largest service providers (ranked in order by 2008 revenue) are AT&T, NTT, Verizon, Deutsche Telekom, France Telecom, Vodafone, China Mobile, Telefonica, BT, and Sprint.
"Global telecom service provider capital expenditures hit a plateau in 2008, marking the end of a 5-year investment cycle and the beginning of a 3-year disinvestment cycle, albeit a less dramatic one than what followed the great telecom crash of 2000," predicts Stephane Teral, principal analyst at Infonetics.
Capex will bottom down in 2010 and a new investment cycle will start in 2011, driven by 3G rollouts in India and Central and Latin America, the start of 3G rollouts in Africa, and a ramp-up in LTE deployments in Australia, Brazil, Western Europe, Japan, and North America.
Highlights of the Infonetics market study include:
- Worldwide, service providers spent $305 billion in 2008 on capital expenditure projects, such as network infrastructure upgrades.
- Global capex is forecast to decline at most 6 percent in 2009, mainly due to a significant capex shakeout in the Middle East and Africa, a weakening U.S. dollar, expected declines in the Brazilian real and Mexican peso, and delays in U.S. broadband stimulus funding.
- Infonetics anticipates a year-end bump up in capex, which could bring the overall capex decline in 2009 to less than 6 percent.
- Optical network hardware is a bright spot in today's tightened capex environment, with decent single-digit percent spending growth expected in 2009, despite currency devaluations.
- Mainly due to currency effects, worldwide service provider revenue is forecast to decline only very slightly in 2009, to $1.67 trillion, driven by mobile communication services, as consumers continue to hold on to their mobile services during tough economic times.
- Mobile infrastructure will continue to dominate total global telecom and datacom spending, followed by voice equipment.
- The world's 10 largest service providers (ranked in order by 2008 revenue) are AT&T, NTT, Verizon, Deutsche Telekom, France Telecom, Vodafone, China Mobile, Telefonica, BT, and Sprint.