China's huge LTE rollouts and EU network upgrades push carrier capex to $354B this year

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Campbell, CALIFORNIA, May 15, 2014—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

"As the fourth year of this new investment cycle continues, we're forecasting worldwide telecom capex to rise 4% and hit US$354 billion by the end of 2014, with the bulk of the investment coming from China's massive LTE rollouts led by China Mobile and China Telecom, and from Deutsche Telekom's and Vodafone's major network upgrades across Europe," reports Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

CAPEX REPORT HIGHLIGHTS

  • In 2013, global telecom carrier capex grew 6.7% year-over-year, to US$340 billion, after a significant forex adjustment that erased billions of operator revenue and capex when converted to the U.S. dollar
    • The Japanese yen dropped more than 30% against the U.S. dollar, the Indian rupee dropped 10%, and the Brazilian real continues to drop
  • Expenditures for every type of equipment except TDM voice, video infrastructure, and CPE grew on a year-over-year basis in 2013, with IP voice rising 32% powered by IMS-based LTE rollouts and VoLTE preparations
  • On the telecom services front, worldwide revenue is up 1.4% in 2013 from 2012, to US$1.97 trillion, dragged by EMEA
  • As saturation and competition intensify in every market of the globe, Infonetics projects global telecom services revenue to grow at a slow 1.7% CAGR from 2013 to 2018
  • EMEA, the world's #2 telecom revenue contributor, is expected to continue losing ground to frontrunner Asia Pacific through 2018, while North America holds steady and Latin America stays flat

WEBINAR: DAS, SMALL CELLS, AND WIFI

Join analyst Stéphane Téral June 5 at noon EDT for How to Get the Best Out of DAS, Small Cells, and WiFi, which analyzes the future of distributed antenna systems (DAS) and their relationship to small cells, remote radio heads (RRHs), and WiFi. Attend live or access the replay:
http://w.on24.com/r.htm?e=783410&s=1&k=CD70E2F6D98C3E67A3B5A1936E23DB13.

ANALYST CONFERENCE CALL FOR CLIENTS

Clients, join Stéphane Téral and Jeff Heynen May 28 at 11 AM EDT for a live service provider capex update, or view on-demand. Log in for password: https://www.infonetics.com/cgp/login.asp?id=885.

CAPEX REPORT SYNOPSIS

Infonetics' biannual service provider capex report provides worldwide and regional market size, forecasts through 2018, analysis, and trends for revenue and capex by service provider type (incumbent, competitive, cable operators, independent wireless, satellite) and capex by equipment type (broadband aggregation equipment; wireless infrastructure; IP routers and CES; optical equipment; IP and TDM voice infrastructure; video infrastructure; all other telecom/datacom network equipment; and CPE non-telecom/datacom network equipment). To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

Press Contact:
Stéphane Téral
Principal Analyst, Mobile Infrastructure and Carrier Economics
Infonetics Research
(408) 583-3371
stephane@infonetics.com
twitter: infonetics

Jeff Heynen
Principal Analyst, Broadband Access and Pay TV
Infonetics Research
(408) 583-3359
jeff.heynen@infonetics.com
twitter: jeffheynen
twitter: infonetics