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IHS: Telecom Carrier Spending Entering New Era Marked by Diverse Regional Trends

June 2, 2015 6:48 PM EDT

CAMPBELL, CA -- (Marketwired) -- 06/02/15 -- Worldwide telecom service provider capital expenditures grew 2.9 percent year-over-year in 2014, to US$352 billion, according to the latest IHS Infonetics Service Provider Capex, Revenue, and Capex by Equipment Type report from IHS (NYSE: IHS). Meanwhile, global telecommunications service revenue grew 0.4 percent in 2014, to US$1.997 trillion

"We're entering a new era of desynchronized cycles in telecom spending. Regions and economic powers have their own investment agendas and pace, and this will result in overall flat-to-low-single-digit capex growth through 2019 unless a major event occurs," said Stéphane Téral, research director for mobile infrastructure and carrier economics at IHS.

CAPEX REPORT HIGHLIGHTS

In 2014, expenditures for every type of equipment except TDM voice slowly grew or stayed flat from the year prior.

Europe posted 3.3 percent year-over-year growth in carrier capex, mainly fueled by Deutsche Telekom and Vodafone.

China more than offset spending declines in Japan and South Korea to drive Asia Pacific's capex growth to 4.2 percent year-over-year in 2014.

Meanwhile, a World Cup hangover slowed telecom spending in Latin America.

IHS forecasts worldwide telecom capex to total a cumulative US$1.8 trillion in the 5 years from 2015 to 2019.

CAPEX REPORT SYNOPSIS
IHS Infonetics' biannual service provider capex report provides worldwide and regional market size, forecasts through 2019, analysis, and trends for revenue and capex by service provider type (incumbent, competitive, cable operators, independent wireless, satellite) and capex by equipment type (broadband aggregation equipment; wireless infrastructure; IP routers and CES; optical equipment; IP and TDM voice infrastructure; video infrastructure; all other telecom/datacom network equipment; and CPE non-telecom/datacom network equipment). To purchase the report, please visit: www.infonetics.com/contact.asp.

RELATED RESEARCH
Europe Exiting Optical Network Spending Slump:
http://www.infonetics.com/pr/2015/1Q15-Optical-Network-Market-Highlights.asp

Hotspot 2.0 and Virtualization Key to New Revenue for WiFi Carriers:
http://www.infonetics.com/pr/2015/Carrier-WiFi-Survey-Highlights.asp

Carrier Voice-over-IP Market Off to Strong Start in 2015, Led by U.S.:
http://www.infonetics.com/pr/2015/1Q15-Service-Provider-VoIP-and-IMS-Market-Highlights.asp

Mobile Operators Using EDGE, HSPA+ to Improve User Experience on Road to LTE:
http://www.infonetics.com/pr/2015/IP-RAN-3GPP-Strategies-Survey-Highlights.asp

RECENT & UPCOMING RESEARCH
Download IHS Infonetics' 2015 service brochure or log in: www.infonetics.com/login.
- Total Fixed and Mobile Subscribers Pivot (Apr. 21)
- Service Provider Capex, Opex, Revenue, and Subscribers Database (Apr. 30)
- Mobile Infrastructure Equipment Forecast (May 29)
- Service Provider Routers & Switches Forecast (May 29)
- LTE Infrastructure Scorecard (July 29)

IHS INFONETICS WEBINARS (https://www.infonetics.com/infonetics-events)
- Data Density in the Mobile Network: Small Cells, RRH, DAS, or WiFi? (Watch now)
- Evolving Network Architectures: Cloud, SDN, NFV and Packet-Optical (Watch now)
- The Future Cable Network: Packet Transport and Virtualization (Watch now)
- Diameter Signaling Control for Next-Gen Networks (June 10: Register)

TO PURCHASE RESEARCH, PLEASE CONTACT:
- North America (West): Larry Howard [email protected] +1 408-583-3335
- North America: Scott Coyne [email protected] +1 408-583-3395
- Greater China: Jeffrey Song [email protected] +86 21-3919-8505
- Japan:Takashi Kimura, TAK [email protected] +81 3-6408-5566

About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today's business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2015 IHS Inc. All rights reserved.

Image Available: http://www.marketwire.com/library/MwGo/2015/6/2/11G043562/Images/2015-Infonetics-SP-Cpx-Rev-and-Cpx-by-Eqpmt-Mkt-Fc-858961670645.jpg

   News Media Contact:Stephane TeralResearch Director, Mobile Infrastructure and Carrier EconomicsIHS +1 408-583-3371Email contact Twitter: @infonetics

Source: Infonetics Research



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