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Infonetics Research: 2009 marks first year in short disinvestment cycle for telecom carriers

Market research firm Infonetics Research (www.twitter.com/infonetics) released the second edition of its 2009 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.

"Global telecom service provider capital expenditures hit a plateau in 2008, marking the end of a 5-year investment cycle and the beginning of a 3-year disinvestment cycle, albeit a less dramatic one than what followed the great telecom crash of 2000. Capex will bottom down in 2010 and a new investment cycle will start in 2011, driven by 3G rollouts in India and Central and Latin America, the start of 3G rollouts in Africa, and a ramp-up in LTE deployments in Australia, Brazil, Western Europe, Japan, and North America," predicts Stéphane Téral, principal analyst for mobile and FMC infrastructure at Infonetics Research.

REPORT HIGHLIGHTS

--  Worldwide, service providers spent US$305 billion in 2008 on capital
    expenditure projects, such as network infrastructure upgrades
--  Global capex is forecast to decline at most 6% in 2009, mainly due to
    a significant capex shakeout in the Middle East and Africa, a weakening US
    dollar, expected declines in the Brazilian real and Mexican peso, and
    delays in US broadband stimulus funding
--  Infonetics anticipates a year-end bump up in capex, which could bring
    the overall capex decline in 2009 to less than 6%
--  Optical network hardware is a bright spot in today's tightened capex
    environment, with decent single-digit percent spending growth expected in
    2009, despite currency devaluations
--  Mainly due to currency effects, worldwide service provider revenue is
    forecast to decline only very slightly in 2009, to $1.67 trillion, driven
    by mobile communication services, as consumers continue to hold on to their
    mobile services during tough economic times
--  Mobile infrastructure will continue to dominate total global telecom
    and datacom spending, followed by voice equipment
--  The world's 10 largest service providers (ranked in order by 2008
    revenue) are AT&T, NTT, Verizon, Deutsche Telekom, France Télécom,
    Vodafone, China Mobile, Telefónica, BT, and Sprint
    

REPORT SYNOPSIS

Infonetics' capex report tracks revenue, capex, capex-to-revenue ratios, opex, ARPU, subscribers, and access lines of 171 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 2013 and equipment forecasts through 2009, 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.

CLIENT CONFERENCE CALL

-- Service Provider Capex, Opex, ARPU, and Subscribers (Dec. 9)

RELATED RESEARCH

-- Optical WSS component market exploding due to aggressive carrier ROADM deployments

-- Mobile backhaul equipment market expected to jump 60% in 2009 to $5.9 billion

-- Mobile advertising, app stores driving service delivery platform market

-- VoIP services bring in $21 billion for service providers in 1H09; strong demand continues

-- Residential voice, video and data services to hit $300 billion by 2013

-- WiMAX growing in India, Russia, Brazil, driven by basic broadband needs and VoIP

-- LTE gaining momentum in 2010, infrastructure market to top $5 billion in 2013

-- Mobile broadband services expected to more than double by 2013

MORE INFORMATION

Log on or join: http://www.infonetics.com/login

From the portal, go to RESEARCH, then SERVICE PROVIDER CAPEX AND SUBSCRIBERS.

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.