Capex spending by public telecom carriers up 6% in 2005

Public carriers in North America, Europe, and Asia Pacific have increased their capital expenditures two years in a row now, and are expected to increase them again for a third consecutive year in 2005, according to Infonetics Research. Carriers in the three regions are expected to increase their capital spending 6% to just under $190 bln in 2005 after 9% annual growth in 2004. Many of the increases reflect investments in next generation technologies like packet voice, broadband, metro Ethernet, and IP/MPLS routers. Capital expenditures are fairly balanced across the three regions, with North America, Europe, and Asia Pacific each representing approximately one-third of the total.

Capex Increases by Region:

  • Asia Pacific: 3% growth expected in 2005
  • Europe: an increase of 6% expected in 2005
  • North America: 6% expected in 2005