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June 09, 2011

Telecom Carriers saw $1.72 Trillion in 2010 Revenue, Carrier Capex Projected to Increase 4.7 Percent During 2011

By Ed Silverstein, TMCnet Contributor



Telecom carriers saw $1.72 trillion in 2010 revenue and are predicting carrier capital expenditures (capex) to increase 4.7 percent during 2011, according to data from Infonetics Research (News - Alert).

The 1.72 trillion amount worked out to a 3.5 percent increase over the amount experienced in 2009.

“2011 is shaping up as the first year of a new 3- to 4-year investment cycle that should lead us to a plateau in 2014. However, don’t get too excited because we’re talking about low single-digit percent capex growth, not the double-digit growth rates of 2006 to 2008, because overall telecom service revenues just aren’t there to justify significant hikes, despite increasing usage of both wireline and wireless broadband,”  Stéphane Téral, principal analyst for mobile and FMC infrastructure at Infonetics Research, said in a recent statement.

He continued, “Mobile network modernization and migration to LTE (News - Alert), along with national wireline broadband initiatives in various regions, will drive this investment cycle.”

Infonetics also reported that worldwide telecom capex was $289 billion in 2010, which was a 3 percent decrease from the previous year. And in 2009 it saw a 5 percent decline.

In addition, Infonetics predicts that carrier capital expenditures will increase 4.7 percent during 2011. Infonetics further predicts increases in all telecom equipment sectors during 2011.

On the other hand, increases in carrier spending on equipment during 2010 did not grow enough to counterbalance declines in “other network equipment spending … particularly for mobile infrastructure,” according to Infonetics.

Infonetics follows these and other companies to come up with its data: Acme Packet, Airspan, Alcatel-Lucent, Alvarion, Apertio, Aperto, Aviat, Cisco, Datang Mobile, Ericsson, Fujitsu, GENBAND, HP, Huawei, Motorola, NEC, Nokia (News - Alert) Siemens, Proxim, Redline, Samsung, Tellabs, UTStarcom, and ZTE.

 

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Ed Silverstein is a TMCnet contributor. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell
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