Driven by India, China, Brazil, Russia, telecom service provider Capex (capital spending) will increase 6 percent in 2013, said Infonetics Research.
The Infonetics report said telecom SP revenue will touch $2 trillion this year.
Despite slow growth in 2012, the fundamentals are intact and 2013 is shaping up as the third year of an investment cycle characterized by capped Capex in western countries, a hike in Japan, and the return of BRIC (Brazil, Russia, India, and China), which will provide most of the fuel for 6 percent year-over-year growth globally.
Europe’s big telecoms — Deutsche Telekom, Orange, Telecom Italia, Telefonica, and Vodafone –slightly increased their Capex year-over-year, a sign they remain committed to investing in their networks despite revenue declines.
Earlier in the day, Ovum said the social messaging market, which is becoming a threat to telecom SPs, will see further acceleration in user growth, together with a widening in the scope of social messaging services in 2014. Ovum expects to see social messaging players challenging the status quo of mobile social networking and media and creating a paradigm shift in social media that will impact several OTT giants.
Infonetics projects most equipment segments to grow in 2013, with the exception of voice, broadband aggregation, and video infrastructure.
Global telecom carrier Capex will grow at a 2 percent compound annual growth rate (CAGR) from 2012 to 2017, reaching $355 billion.
Wireless players are expected to continue their Capex foray through 2017 at the expense of incumbents, who will see their share shrink.
The Asia Pacific region will remain the world’s largest spender through at least 2017.
Infonetics Capex projections reflect China Mobile’s 4G expansion in China and Capex plans of Bharti Airtel and Vodafone in India. This is good news for telecom equipment vendors such as ZTE, Huawei, NSN, Ericsson, Cisco, Alcatel-Lucent, Samsung, etc.
