AUGUST 30, 2007 -- Capital expenditures of telecom service providers are up in every region of the world, driven by carrier network transformation and migration projects; swelling numbers of mobile and broadband subscribers; and increasing demand for personal broadband services and high-bandwidth video services such as mobile TV, mobile video, IPTV, and video on demand, claims a new report from Infonetics Research (search for Infonetics Research).
Service provider revenue also is up in all regions, as carriers launch new services to meet the demands of hundreds of millions of worldwide subscribers, the report shows.
"For the third year in a row, carrier capex has increased in all regions of the world, but we expect this investment cycle to plateau in 2009 and decrease in 2010," asserts StÃ©phane TÃ©ral, principal analyst at Infonetics Research and lead author of the report. "However, service providers in most regions are operating at a sustainable capex-to-revenue ratio in the 15% range, which should carry the market in these regions through the plateau without much disruption. The Asia Pacific region is worrisome, though, because the average capital intensity rate there is a high 21%, fueled by China's rapid growth. If that rate doesn't come down, we could be looking at the beginning of another telecom bubble in that region," he notes.
The report also finds that:
Infonetics' "Service Provider Capex, Opex, ARPU & Subscribers" report tracks revenue, capex, capex-to-revenue ratios, opex, ARPU, subscribers, and access lines of public and semi-private/government-owned service providers.Visit Infonetics Research