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Global telecom carrier capex to hit $225 billion this year, says Infonetics

Capital expenditures of telecom service providers are up in every region of the world, according to a new report from Infonetics Research.

Carrier network transformation and migration projects, swelling numbers of mobile and broadband subscribers, and increasing demand for personal broadband services and high bandwidth video services, such as mobile TV, mobile video, IPTV and video on demand, are driving the growth in capex.

Among the highlights of “Service Provider Capex, Opex, ARPU & Subscribers”:

  • Public service providers worldwide spent a combined $216.2 billion on capex in 2006, up 13 percent from 2005. Worldwide capex is expected to grow 4 percent in 2007 to $224.6 billion.
  • Service providers earned a combined $1.2 trillion in annual worldwide revenue in 2006, up 8 percent from 2005, and are expected to increase their revenue 4 percent by 2007.
  • Asia Pacific’s share of worldwide telecom capex spending is forecast to peak at 34 percent in 2007, followed by EMEA with 31 percent and North America with 29 percent, although the weak dollar has inflated these percentages.
  • The top service providers that will make up about half of all public capex spending in each region in 2007:
  • AT&T, Sprint Nextel, and Verizon in North America. Deutsche Telekom , France Télécom, BT, Telecom Italia and Telefónica in EMEA. China Mobile, China Telecom and NTT in Asia Pacific. América Móvil, Telmex and Telefónica in CALA.

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