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TMCNet:  Infonetics Research: Telecom carriers weathering storm better than many expected: capex down 5.9% in 2009

[May 27, 2010]

Infonetics Research: Telecom carriers weathering storm better than many expected: capex down 5.9% in 2009

(Market Wire Via Acquire Media NewsEdge) CAMPBELL, CA -- (MARKET WIRE) -- 05/27/10 -- Market research firm Infonetics Research (www.twitter.com/infonetics) released the first edition of its 2010 biannual Service Provider Capex, Opex, ARPU, and Subscribers report, which features analysis on how current economic conditions are impacting telecom markets by region and equipment segment.

"As world economies climbed out of recession, telecom service providers reduced their capital expenditures 5.9% worldwide in 2009, in line with our predictions and much less than many had expected. Carrier capex didn't tank like it did in 2001 for two main reasons: service providers are operating with clean balance sheets, having learned that lesson from the great telecom crash, and the demand for broadband today is very real indeed. Now, don't declare victory yet, as we forecast worldwide carrier capex to decline again and bottom out in 2010, followed by a new investment cycle starting in 2011 driven by a wave of 2G upgrades, 3G and LTE rollouts, and fiber-based wireline broadband initiatives around the globe," predicts Stéphane Téral, principal analyst for mobile and FMC infrastructure at Infonetics Research.

REPORT HIGHLIGHTS Worldwide, service providers spent US$295 billion in 2009 on telecom and non-telecom capital expenditure projects, 5.9% less than they spent in 2008 Carriers reduced investment in network infrastructure by 8% in 2009, with the deepest cuts in IP voice infrastructure, optical network equipment, video infrastructure, and IP routers Mobile infrastructure spending continues to make up the largest portion of all network infrastructure investments made by service providers, making up about 19% Worldwide, service providers took in US$1.65 trillion in revenue in 2009, a decrease of 4.2% from 2008 Carrier revenue is expected to resume growth in 2010 The world's 10 largest service providers (ranked in order by 2009 revenue in US dollars) are AT&T, NTT, Verizon, Deutsche Telekom, China Mobile, France Télécom, Vodafone, Telefónica, KDDI, and Comcast REPORT SYNOPSISInfonetics' capex report tracks revenue, capex, capex-to-revenue ratios, opex, ARPU, subscribers, and access lines of 184 public and semi-private/government-owned service providers on a monthly and biannual basis. The report includes past, current, and forecast capex and revenue data through 2014 and equipment forecasts through 2010, market drivers, analysis, service provider demographics, and customizable pivot tables to analyze data by service provider, service provider type, and equipment category.

The report includes a Fundamental Telecom/Datacom Market Drivers report with analysis of overall market conditions for service providers, enterprises, subscribers, and the global economy.

Regions covered in the report include North America, EMEA (Europe, Middle East, Africa), Asia Pacific, CALA (Central and Latin America), and worldwide.

RELATED RESEARCHLog on or join Infonetics' portal (http://www.infonetics.com/login), or follow the links below for report highlights or additional information: LTE market accelerating, forecast to top $11 billion by 2014; China carriers on board Latin American operators drive cable broadband equipment market to record quarter China buoys carrier VoIP and IMS equipment market in 1Q10 Shift seen in operator strategy for mobile backhaul; equipment spending up 21% Femtocell market up 154%; Apple overtakes Nokia in FMC phone market WiMAX carriers rate Alvarion, Alcatel-Lucent, Motorola top, with Cisco, Huawei close behind Verizon, AT&T, New Global Telecom, Cbeyond, 8x8 among top business VoIP leaders Trend toward hosted and business VoIP services seen across three new reports Carriers and enterprises gobbling up 10G, 40G, 100G ports to handle exploding traffic Cable and IPTV telco operators aggressively investing in video on demand servers Telecom operators ramp investment in subscriber data management to address pain points Telecom carriers increasing spending on outsourced services, growing to $73 billion in 2014 Carrier Ethernet market is booming SALES Larry Howard, Vice President: larry@infonetics.com, +1-408-583-3335 Scott Coyne, Senior Account Director, Eastern North America, Europe, Middle East: scott@infonetics.com, +1-408-583-3395 Infonetics Research 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.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1268413 <b>Lead Analyst: </b>Stéphane Téral Principal Analyst, Mobile and FMC Infrastructure Infonetics Research +1 408-583-3371 Email Contact http://twitter.com/infonetics

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