Telecom capex increase expected in 2012; Asia is world’s largest spender

Campbell, CALIFORNIA, June 18, 2012—Market research firm Infonetics Research released excerpts from its Service Provider Capex, Revenue, and Capex-by-Equipment-Type report, which analyzes telecom operator revenue and capital expenditures (capex); forecasts capex by operator type, region, and telecom equipment segment; and provides insight into important telecom spending trends.

"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. Operators have to invest in their networks or they’ll disappear -- competition is too cut-throat not to," notes Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

Téral adds: "High demand everywhere for telecom services, particularly mobile broadband, is fueling the latest investment cycle. The key capex contributors in 2012 will be Clearwire, Sprint, and T-Mobile USA in the US; NTT DoCoMo and Softbank Mobile in Japan; and KT, LGU+, and SK telecom in South Korea. China recently revealed a US$58 billion economic stimulus package to fund a fresh round of investment in telecom infrastructure. Meanwhile, Europe's Big 5 have increased capital intensity by 2 percentage points for the first time in 5 years, right in the middle of the critical economic downturn! As for Latin America, operators already spiked, with capex there up 25% in 2011, led by América Móvil and Telefónica."

MORE CARRIER CAPEX HIGHLIGHTS

• Global telecom carrier capex grew 3% to $301 billion in 2011 from 2010
• Spending on every type of network equipment grew in 2011, with the exception of TDM voice, which continued its steep decline
• Asia Pacific was again the largest telecom carrier capex region, followed by EMEA (Europe, Middle East, Africa)
• Infonetics expects worldwide capex to spike in 2012, then level out in 2015 and 2016 at around the US$345 billion mark
• Wireless operators’ share of capex is forecast to grow from a quarter to nearly a third of global capex between 2012 and 2016, as the world continues to go mobile
• Telecom service provider revenue grew 6% to $1.8 trillion worldwide in 2011 over 2010
• Operators in Asia Pacific and EMEA are the largest revenue generators, each region with about a third of global revenue

CAPEX REPORT SYNOPSIS

Infonetics’ biannual Service Provider Capex report tracks revenue and capex by service provider type (incumbent, competitive, cable, and independent wireless operators) and capex by equipment type (CPE, non-telecom/datacom network equipment, and network infrastructure, including IP routers, carrier Ethernet switches, and broadband aggregation, wireless, optical, IP voice, TDM voice, video, and all other telecom/datacom network infrastructure). The report covers all major world regions and includes historical data and forecasts from 2003 through 2016, and in-depth analysis with trends and predictions by region, carrier type, and technology segment. To buy the report, contact Infonetics' sales: http://www.infonetics.com/contact.asp.

Infonetics’ related Service Provider Capex, Opex, ARPU, and Subscribers Database is offered separately and published quarterly.

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RECENT AND UPCOMING RESEARCH

• Download Infonetics’ 2012 Research Publication Calendar: http://bit.ly/zwjcRs
• 2G, 3G, 4G (LTE) Services and Subscribers: Voice, SMS/MMS, and Broadband
• Fundamental Telecom/Datacom Market Drivers
• Mobile VoIP Services and Subscribers Market Size and Forecasts
• IMS Service Strategies, Product Features, Vendor Leadership: Service Provider Survey
• LTE Deployment Strategies: Global Service Provider Survey
• 2G, 3G, 4G (LTE/WiMAX) Infrastructure and Subscribers Market Share and Forecasts
• Small Cell Equipment Market Size and Forecasts
• Small Cell Coverage Strategies: Global Service Provider Survey
• 2G, 3G, 4G (LTE) Infrastructure and Subscribers in Japan and China

TO BUY REPORTS, CONTACT SALES:

• N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1-408-583-3335
• N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com, +1-408-583-3395
• Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com, +44-755-488-1623
• Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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