In 2011, global capital spending will increase 2.9 percent over 2010, with capital spending increasing across most regions--except North America, which will be down slightly--according to Yankee Group’s latest report.
“Now that we’ve passed through the worst of the macroeconomic doldrums, 2011 represents the beginning of a new cycle of capital spending in the telecommunications market,” says Brian Partridge, Yankee Group vice president and co-author of the report. “As consumer demand for broadband connectivity continues to explode, we expect to see modest capex growth year over year through 2014.”
- China exceeds expectations. Despite predictions of aggregate capex decreases in the region for 2010, Chinese telecom operators showed remarkable resilience in 2010; this year, China Mobile, China Unicom and China Telecom combined will increase capital spending by 10 percent, from $35.3 billion to $38.9 billion.
- North American capex will decline by 3 percent. North American operators will decrease spending slightly, from $70.8 billion in 2010 to $68.7 billion in 2011, making North America the only region reducing capex in 2011.
- Capital spending will continue to rise through 2014. Global capex will increase from $275.7 billion in 2011 to $302.2 billion in 2014.