Skip to main content

Global Telecom Service Provider Investment

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.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C