Skip to main content

China Invests $58B in Economic Stimulus Package

Infonetics Research released excerpts from its latest market study of global service providers, which analyzes telecom operator revenue and capital expenditures (capex); forecasts capex by operator type, region, and telecom equipment segment; and provides insight into important telecom spending trends.

"We're expecting a telecommunications capex hike in 2012, as operators around the world ramp their spending like crazy to launch LTE networks, modernize their mobile networks, and carry out national wireline broadband initiatives, said Stephane Teral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

According to the Infonetics assessment, network operators must invest in their networks or they'll suffer the consequences -- after all, worldwide competition for telecom leadership is very intense. And, this twenty-first century infrastructure is a key lever for sustained national prosperity and growth.

What's driving the latest round of network construction and enhancements? High demand everywhere for telecom services, particularly mobile broadband, is fueling the latest investment cycle.

The key capex contributors in 2012 will be Clearwire, Sprint, and T-Mobile USA in the United States; NTT DoCoMo and Softbank Mobile in Japan; and KT, LGU+, and SK Telecom in South Korea. Moreover, some nations have a more cohesive telecom investment strategy.

China recently revealed a $58 billion economic stimulus package to fund yet another round of investment in telecom infrastructure. They're taking the opportunity -- during the current global economic downturn -- to invest strategically now, and thereby position the nation for a leadership role in the global networked economy.

Meanwhile, Europe's Big 5 service providers have increased capital intensity by 2 percentage points for the first time in 5 years -- right in the middle of their regional economic downturn.

As for Latin America, operators already have led a huge investment burst, with capex there up 25 percent in 2011, led by America Movil and Telefonica.

Other highlights from the market study include:
  • Global telecom carrier capex grew 3 percent to $301 billion in 2011 from 2010.
  • Spending on every type of network equipment grew in 2011, with the exception of TDM voice, which continued its steep decline.
  • Asia Pacific was again the largest telecom carrier capex region, followed by EMEA (Europe, Middle East, Africa).
  • Infonetics expects worldwide capex to spike in 2012, then level out in 2015 and 2016 at around the $345 billion mark.
  • Wireless operators' share of capex is forecast to grow from a quarter to nearly a third of global capex between 2012 and 2016, as the world continues to go mobile.
  • Telecom service provider revenue grew 6 percent, to $1.8 trillion worldwide, in 2011 over 2010.
  • Operators in Asia Pacific and EMEA are the largest revenue producers -- with each region generating about a third of the overall global revenue.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of