Ovum RHK: North American wireline capex up 7% in 3Q07

Nov. 14, 2007
NOVEMBER 14, 2007 -- Meanwhile, mobile operator capital spending dropped 18 percent.

NOVEMBER 14, 2007 -- Ovum RHK (search for Ovum RHK) today posted its analysis of third-quarter 2007 revenue and capital spending by North American network operators. Wireline operators increased capital spending by 7 percent versus the third quarter of 2006, while mobile operator capital spending plummeted 18 percent. Revenues remained on trend, with mobile revenue growing nearly 10 percent, and fixed revenue basically flat versus last year.

"Third-quarter growth in wireline capex provided welcome relief to equipment vendors, who experienced strong growth in the optical networking and switching and routing segments," said John Lively, vice president, forecasting, at Ovum RHK. "Mobile capex hit a real pothole, led by Sprint Nextel. With mobile capital intensity at a seven-year low, however, there is room for a rebound in 4Q07."
3Q07 highlights for North American network operators included:

  • Wireline revenues = $43.8 billion, up 0.5% versus 3Q06
  • Wireline capex = $7.4 billion, up 7.4% versus 3Q06
  • Mobile revenues = $37.9 billion, up 9.6% versus 3Q06
  • Mobile capex = $4.7 billion, down 18.2% versus 3Q06.
Ovum RHK's global forecast of service provider capital spending will be updated in December.

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