Global telecom Capex to grow 4% in 2012 over 2011

Telecom Lead Asia: Telecom Capex is likely to grow 4 percent in 2012 over 2011.

The telecom Capex growth will be better than global GDP’s growth of 3.3 percent.

Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research, said: “With the announcement of AT&T’s and Deutsche Telekom’s multi-billion dollar investment plans, next year’s Capex outlay looks brighter.”

Globally, mobile service revenue is the main growth engine in the overall telecom/datacom market, up 4.3 percent year-over-year in the first half of 2012.

User mobility, specifically BYOD anywhere, is putting pressure on carriers to move to a single network for fixed and mobile access, internet traffic, and private/premium services.

Data traffic growth is outstripping transport equipment costs: traffic is climbing 29 percent annually while equipment costs are falling 10 percent.

Software-defined networks (SDNs) are on service providers’ minds, but it is a longer-term challenge to find implementations of hybrid SDN and non-SDN in live networks.

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The phase out of stimulus monies and pressure on government budgets is decreasing public sector spending and taking a bite out of overall enterprise growth.

With security top of mind due to unprecedented threats and the growing BYOD trend, businesses are looking to integrate security into everything from smartphones to routers and switches, and are evaluating data center security appliances, cloud security services, and security for virtualized environments and public and private clouds.

editor@telecomlead.com

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