Skip to main content

Mobile and Video Apps Drive Service Provider Capex

Infonetics Research released its latest Service Provider report -- which analyzes telecom carrier capital expenditures (capex), operational expenses (opex), revenue per user, and subscriber trends by operator, operator type, region, and telecom equipment segment.

"Telecom capital expenditures are bottoming out at $289 billion this year, and our cycle-based forecast model and conversations with service providers indicate that a new investment cycle will start in 2011 and last several years, with capex growing to $321 billion in 2014 before growth slows again" says Stephane Teral, principal analyst for mobile and FMC infrastructure at Infonetics Research.

Overall, capital intensities will continue to slowly decline through at least 2014. because the world's telecommunications infrastructure is essentially built out.

Infonetics market study highlights include:

- From its peak in 2008, worldwide service provider capex declined 5.3 percent in 2009, and is on track to decline another 3 percent in 2010.

- The dip in capex in 2010 is due mainly to the fact that carriers in China, which invested heavily in network upgrades in 2009, have completed their 3G rollouts.

- Infonetics Research forecasts a 1.6 percent pickup in telecom carrier capex in 2011, marking the start of a new investment cycle.

- Despite the overall decline in service provider capex in 2010, some telecom equipment segments are faring well, including video infrastructure and IP routers/carrier Ethernet switches, which saw double-digit worldwide revenue increases in the first half of 2010.

- Infonetics expects the major areas of investment from 2011 to 2014 to be fiber-based wireline broadband (FTTx), 2G mobile network capacity expansion, network migration from 2G to 3G, and migration to LTE (mobile broadband will follow).

- Low equipment pricing resulting from fierce competition between western and Chinese vendors is giving service providers incentive to cap their capex budget and buy more equipment with lower budgets.

Popular posts from this blog

How Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment.  According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022. Future of Work Market Development "Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC . According to the IDC assessment, organizations must mak

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

Global EV Charging Revenue to Exceed $300B

During 2022, fuel prices increased very quickly, partly due to a number of macroeconomic reasons. In fact, the effects of the global COVID-19 pandemic are still impacting fuel prices, with many oil refineries having reduced capacity due to a prior fall in demand. Those significant events and other trends have created a demand for a growing variety of Electric Vehicles (EVs). While EVs have existed for decades, they really became a viable option for more consumers during the past five years. However, although EVs are suitable for some buyer needs, their usability is constrained by the current availability of battery charging infrastructure. EV Charging Market Development According to the latest worldwide market study by Juniper Research, revenue from electric vehicle charging will exceed $300 billion globally by 2027 -- that's up from $66 billion in 2023. Regardless, the Juniper analysis found that fragmentation in battery charging networks is restricting further EV adoption in some