Infonetics: Telecom Operator Capex Increasing 6% in 2013, Ignited by BRIC Countries; Revenue to Hit $2 Trillion

"Despite slow growth in 2012, the fundamentals are intact and 2013 is shaping up as the third year of an investment cycle characterized by capped capex in western countries, a hike in Japan, and the return of BRIC (Brazil, Russia, India, and China), which will provide most of the fuel for 6% year-over-year growth globally," notes Stephane Teral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research. (Graphic: Infonetics Research)

CAMPBELL, Calif.--()--Market research firm Infonetics Research released excerpts from its latest Service Provider Capex, Revenue, and Capex by Equipment Type report, which tracks telecom operator revenue and capital expenditures (capex) by operator type, region, and equipment segment and provides insight into telecom spending trends.

ANALYST NOTE

“Despite slow growth in 2012, the fundamentals are intact and 2013 is shaping up as the third year of an investment cycle characterized by capped capex in western countries, a hike in Japan, and the return of BRIC (Brazil, Russia, India, and China), which will provide most of the fuel for 6% year-over-year growth globally,” notes Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

CAPEX REPORT HIGHLIGHTS

  • Europe’s Big 5—Deutsche Telekom, Orange, Telecom Italia, Telefónica, and Vodafone—slightly increased their capex year-over-year, a sign they remain committed to investing in their networks despite revenue declines
  • Infonetics projects most equipment segments to grow in 2013, with the exception of voice, broadband aggregation, and video infrastructure
  • Global telecom services revenue is anticipated to hit US$2 trillion in 2013
  • Global telecom carrier capex is forecast by Infonetics to grow at a 2% compound annual growth rate (CAGR) from 2012 to 2017, reaching US$355 billion
  • Wireless players are expected to continue their capex foray through 2017 at the expense of incumbents, who will see their share shrink
  • Asia Pacific will remain the world’s largest spender through at least 2017

CLIENT CONFERENCE CALL

Clients, join Stéphane Téral November 27 at noon ET for a live service provider capex recap and outlook, or view on demand. Log in for password: www.infonetics.com/cgp/login.asp?id=725.

CAPEX REPORT SYNOPSIS

Infonetics’ biannual service provider capex report provides worldwide and regional market size, forecasts through 2017, analysis, and trends for revenue and capex by service provider type (incumbent, competitive, cable, wireless) and capex by equipment type (wireless infrastructure; IP routers and CES; broadband aggregation equipment; CPE; IP voice infrastructure; TDM voice infrastructure; optical equipment; video infrastructure; non-telecom/datacom network equipment; and other telecom/datacom network equipment). To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

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TO BUY REPORTS, CONTACT:

N. America (West), Asia Pacific: Larry Howard, larry@infonetics.com, +1 408-583-3335

N. America (East), Midwest, L. America: Scott Coyne, scott@infonetics.com, +1 408-583-3395

EMEA, India, Singapore: George Stojsavljevic, george@infonetics.com, +44 755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

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 effectively. View Infonetics’ About Us slides at http://bit.ly/QUrbrV.

Contacts

Infonetics Research
Stéphane Téral, +1 408-583-3371
Principal Analyst, Mobile Infrastructure and Carrier Economics
stephane@infonetics.com
Twitter: @infonetics

Release Summary

Excerpts from Infonetics' latest Service Provider Capex, Revenue, and Capex by Equipment Type report, by Stephane Teral. Top 10 service providers, regional trends, and more.

Contacts

Infonetics Research
Stéphane Téral, +1 408-583-3371
Principal Analyst, Mobile Infrastructure and Carrier Economics
stephane@infonetics.com
Twitter: @infonetics