Capital expenditures (capex) by
telecommunications service providers globally is expected to increase at a
compounded rate of 1.5 percent, from $207 billion in 2012 to $223.3 billion in
2017, says a new market analysis report from The
Insight Research Corporation.
According to the new market study, capex in the various global regions will be
very uneven, with North America, Europe and the Latin American-Caribbean regions
showing little or no growth and only Asia-Pacific and Africa continuing to make
investments in telecommunications hardware and software to keep up with
burgeoning customer demand for new services.
and Capital Investments: Impacts of the Financial Crisis on Worldwide
Telecommunications, 2012-2017" notes that capex spending among
fixed-line operators continues to decline, and the only growth in capex spending
comes from the mobile operators in developing countries that continue increase
their capital outlays to meet the pent up demand for service. And while demand
for telecommunications services may be income inelastic and industry revenue may
actually grow over the forecast period, services in every global region will
nonetheless come under heavy pricing pressure as operators fight over the
cost-conscious customers quite willing to delay new device purchases.
“Customers in every region are
pinching pennies and the demand for advanced applications is uncertain. The
confluence of these trends means a further erosion of operator margins, which in
turn will affect investments into infrastructures and new technologies since
funding is now more difficult to obtain,” says
Insight Research President Robert
Rosenberg. “The difficulty in finding funding now faced by many operators will
certainly slow down, if not derail, the rolling out of investments in NGNs,
WiMAX, LTE, or converged services,” Rosenberg concluded.
Capital spending forecasts are
provided for the US, Canada, UK, Germany, France, Japan, China, and India. On a
per country basis, capex spending is provided for fixed lines, mobile, and
broadband. Forecasts are also provided for capex allocation by equipment;
plant; software licenses; and the category “other”.
An excerpt, table of contents,
and ordering information for this market research report is available online at
http://www.insight-corp.com/reports/invest12.asp. This 88-page report is
available in Electronic (PDF) format and can be ordered online. Visit our
Website, or call 973-541-9600 for details.
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Ms. Kim Novak, Marketing Director