Insight Research: Telecommunications Capital Expenditures Spending to Hit $1.2 Trillion over 5 Years
Dec 18, 2012 (Close-Up Media via COMTEX) --
A new market analysis report from The Insight Research Corp. revealed that 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.
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.
According to a release, "Telecommunications and Capital Investments: Impacts of the Financial Crisis on Worldwide Telecommunications,-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," said 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 U.S., 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."
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