Global telecom capital investment will rise four percent in 2014, reaching a global total of $354 billion by the end of 2014, according to Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics (News - Alert) Research.
As always, it matters greatly where in the world such investment is made, and which suppliers are positioned to participate in the upside.
The bulk of the investment will come from China, specifically to support a major wave of Long Term Evolution network creation lead by China Mobile (News - Alert) and China Telecom.
But new capital investment by Deutsche Telekom and Vodafone, is responsible for capital investment growth across Europe, Infonetics Research reports.
In 2013, global telecom carrier capital investment grew 6.7 percent year-over-year, to $340 billion.
But foreign exchange adjustments affected the reported value of investments by billions of U.S. dollars.
The Japanese Yen dropped more than 30 percent against the U.S. dollar, while the Indian Rupee dropped 10 percent, for example.
Aside from the importance of mobile CAPEX, certain categories of investment declined, while others grew.
Expenditures for every type of equipment except time division multiplex voice, video infrastructure, and customer premises equipment grew on a year-over-year basis in 2013.
Spending on IP voice grew 32 percent, based on investment to support IP Multimedia Subsystem-based LTE (News - Alert) rollouts and Voice over LTE infrastructure, Infonetics Research reports. The story there is “mobile.”
Service provider revenue grew, on a global basis, about 1.4 percent in 2013, over 2012 levels, to $1.97 trillion.
But overall service provider revenue growth is going to slow, as virtually all markets are affected by demand saturation and heightened competition.
As a result, Infonetics Research (News - Alert) projects global telecom services revenue will grow at a slow 1.7 percent compound annual growth rate from 2013 to 2018.
On a regional basis, gross revenues will increase most in the Asia Pacific region, while the global share generated in Europe, the Middle East and Africa declines, in comparison.
The share of global service provider revenue generated in North America and South American will be flat.
Edited by Stefania Viscusi