Tuesday, June 19, 2012

Global Telecom Investment Grows in 2012, Lead by Mobile

Infonetics Research expects worldwide service provider capital investment to climb in 2012, then level out in 2015 and 2016 at around the $345 billion mark.

Global telecom carrier capital spending grew three percent to $301 billion in 2011, up from 2010 levels, according to Infonetics Research. Spending on every type of network equipment grew in 2011, with the exception of TDM voice, which continued its steep decline.

Telecom service provider revenue grew six percent to $1.8 trillion worldwide in 2011 over 2010, Infonetics also says Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

"We’re expecting a telecom capex hike in 2012 as operators around the world ramp their spending like crazy to launch LTE networks, modernize their mobile networks, and carry out national wireline broadband initiatives,” says Téral.

Clearwire, Sprint, and T-Mobile USA in the United States;NTT DoCoMo and Softbank Mobile in Japan and KT, LGU+, and SK telecom in South Korea will be among the carriers expected to increase their capital investments in 2012.

China also recently allocated $58 billion for further investment in telecom infrastructure.

Meanwhile, Europe's Big Five have increased capital investment two  percentage points for the first time in five years.

In Latin America, operators increased capex 25 percent in 2011, led by América Móvil and Telefónica.

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