2006 NA telecom capex

Good news: NA telecom spending grew 8% to almost $69bn in 2006, according to Infonetics, and would continue to grow to $77bn by 2010. Simultaneously, Capex-to-revenue ratios are expected to remain stable at around 17% through 2008 due to a number of mid-term projects, and then will trend down to about 16% in 2010.

The top three markets in 2006 were voice, mobile RAN and optical equipment, while the top three investors would be AT&T, Sprint Nextel and Verizon would account for 61% of the total public SP capex. Incumbent MSOs should invest over $15bn in 2007as the continue migartion to all IP networks.

Another research provides a different point of view. iSuppli forecasts that telcos would invest $41bn (up less than 2%) on equipment in 2007, making this year a record high for telco capex since 2002. Telco capex would be directed to access-equipment spending at 2006 levels, and to their core networks in order to provide video and other multimedia services to consumers.