Telecom-carrier capex on the rise

For the first time since the dot-com crash in 2000, telecom- and data-network service providers around the world are increasing their capital expenditures-particularly on next-generation technologies like packet voice and IP/MPLS routers, according to three new “Quarterly Service Provider Capex Analysis” reports from Infonetics Research (Boston).

This year, European service providers have increased capital expenditures (capex) by 11% over last year, while carriers in Asia-Pacific have boosted capex by 5%. In both regions, competitive carriers are increasing their capex considerably more than the incumbents.

In North America, RBOCs and Canadian ILECs have increased their spending, while IXCs, MSOs, CLEC/ISPs, and IOCs have decreased spending, resulting in a projected 5% dip in overall North American service-provider capex between 2003 and 2004.

“In all regions, the capex increases are generally going toward next-generation technologies to introduce new service offerings and promote revenue growth,” notes Kevin Mitchell, directing analyst and lead author of the reports.

In the second quarter of this year, capex-to-revenue ratios were Asia-Pacific, 19% (down from 30% in 2001 and 21% last year); Europe, 14% (down from 23% in 2001 and up from 12% last year); and North America, 14% (down from 29% in 2001 and 15% last year).

Infonetics Research’s capex reports track public wireline service providers headquartered in Asia-Pacific, Europe, and North America. Capex is presented by category: access aggregation equipment, customer premises equipment, multiservice switches, IP/MPLS routers, optical equipment, voice equipment, other telecom- and datacom-network equipment, and non-telecom- and data-network equipment. For more details, visit the company’s Website at www.infonetics.com.

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