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North American Telecom Carrier Capex to Grow 5% to $61B in 2005 After Holding Steady in 2004
[April 07, 2005]

North American Telecom Carrier Capex to Grow 5% to $61B in 2005 After Holding Steady in 2004


BOSTON, April 7 /PRNewswire/ -- North American service providers' capital expenditures were just under $58 billion in 2004, an increase of a fraction of a percent from 2003, and are projected to increase 5% to $61 billion in 2005, according to Infonetics Research's biannual Service Provider Capex Analysis, North America report.


"We saw some meaningful changes in the North American capex environment in 2004, with aggregate spending holding steady after three years of drastic cuts, and ILECs increasing their investments," said Kevin Mitchell, directing analyst for Infonetics Research. "Another noteworthy trend is how fast mobile subscribers are closing in on access lines, with mobile subscribers now at 90% of PSTN lines, up from 77% at the close of 2003. North American mobile subscribers grew 13% between 4Q03 and 4Q04, from 145 million to 164.3 million. We could easily see mobile overtake access lines in 2005."
2004 North American Capex Highlights

-- DSL subscribers increased 44% between 4Q03 and 4Q04 to 16.5 million
-- Cable Internet subscribers increased 27% between 4Q03 and 4Q04 to 21.4
million
-- RBOCs and Canadian ILECs increased their capex in 2004 and will
increase it again in 2005, particularly on IP/MPLS routers
-- Cable companies decreased their capex between 2003 and 2004, but will
increase spending a bit in 2005, mostly on voice equipment and IP/MPLS
routers
-- Broadband lines equaled 21% of access lines in North America
-- North American carrier revenue is projected to be flat in 2005 after
inching up in 2004



Infonetics' projection for 2004 from one year ago was only 4% lower than actual results for 2004 capex and only 1% lower than actual revenue.
The report tracks North American public mobile carriers and wireline service providers (Canadian ILECs, RBOCs, CLECs, IOCs, IXCs, ISPs, and MSOs), presenting revenue, capital expenditures, and capital expenditure-to-revenue ratios by individual service provider and by service provider type. Capital expenditures per provider type are presented in eight categories: access aggregation equipment, CPE, multiservice switches, IP/MPLS routers, optical equipment, voice equipment, and all other telecom and datacom network equipment, and non-telecom and data network equipment. The number of access lines and DSL, cable broadband, and mobile subscribers per service provider is also included.
Capex reports for Europe and Asia Pacific will be released April 14 and April 28, respectively.
For the table of contents, go to http://www.info.infonetics.com/. For sales, contact Larry Howard, vice president, at [email protected], 916-933-3543.
Infonetics Research (http://www.infonetics.com/) is an international market research and consulting firm covering the data networking and telecommunications industries in North America, Europe, and Asia. Infonetics helps companies develop, market, and sell products and services by providing objective analysis of end-users, service providers, and product manufacturers. Infonetics has offices in Silicon Valley, the Boston Metro Area, and London.
Available Topic Expert(s): For information on the listed expert(s), click appropriate link. Kevin Mitchell http://profnet.prnewswire.com/ud_public.jsp?userid=348430
Infonetics Research


CONTACT: Kevin Mitchell, Directing Analyst, Service Provider Voice &Data of Infonetics Research, Inc., +1-781-933-9649, or [email protected]


Web site: http://www.infonetics.com/

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