Infonetics: China’s Huge LTE Rollouts and EU Network Upgrades Push Carrier Capex to $354B This Year

  Infonetics: China’s Huge LTE Rollouts and EU Network Upgrades Push Carrier
  Capex to $354B This Year

Business Wire

CAMPBELL, Calif. -- May 15, 2014

Market research firm Infonetics Research released excerpts from its latest
Service Provider Capex, Revenue, and Capex by Equipment Type report, which
tracks telecom operator revenue and capital expenditures (capex) by operator
type, region, and equipment segment and provides insight into telecom spending


“As the fourth year of this new investment cycle continues, we’re forecasting
worldwide telecom capex to rise 4% and hit US$354 billion by the end of 2014,
with the bulk of the investment coming from China’s massive LTE rollouts led
by China Mobile and China Telecom, and from Deutsche Telekom’s and Vodafone’s
major network upgrades across Europe,” reports Stéphane Téral, principal
analyst for mobile infrastructure and carrier economics at Infonetics


  *In 2013, global telecom carrier capex grew 6.7% year-over-year, to US$340
    billion, after a significant forex adjustment that erased billions of
    operator revenue and capex when converted to the U.S. dollar

       *The Japanese yen dropped more than 30% against the U.S. dollar, the
         Indian rupee dropped 10%, and the Brazilian real continues to drop

  *Expenditures for every type of equipment except TDM voice, video
    infrastructure, and CPE grew on a year-over-year basis in 2013, with IP
    voice rising 32% powered by IMS-based LTE rollouts and VoLTE preparations
  *On the telecom services front, worldwide revenue is up 1.4% in 2013 from
    2012, to US$1.97 trillion, dragged by EMEA
  *As saturation and competition intensify in every market of the globe,
    Infonetics projects global telecom services revenue to grow at a slow 1.7%
    CAGR from 2013 to 2018
  *EMEA, the world’s #2 telecom revenue contributor, is expected to continue
    losing ground to frontrunner Asia Pacific through 2018, while North
    America holds steady and Latin America stays flat


Join analyst Stéphane Téral June 5 at noon EDT for How to Get the Best Out of
DAS, Small Cells, and WiFi, which analyzes the future of distributed antenna
systems (DAS) and their relationship to small cells, remote radio heads
(RRHs), and WiFi. Attend live or access the replay:


Infonetics’ biannual service provider capex report provides worldwide and
regional market size, forecasts through 2018, 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 buy the report, contact Infonetics:


  *Full-scale outsourcing by telecom carriers pushes managed services market
    to new heights
  *China Mobile increases capital intensity 6% year-over-year
  *EDGE and HSPA/HSPA+ holding steady in face of LTE blitz – new Infonetics
    IP RAN study
  *DAS market growth in N. America and Brazil offsets China slowdown
  *Small cell market on track to increase 65% this year
  *As businesses turn to the IoT for growth, M2M WAN connections set to
    triple by 2018


Visit to register for upcoming
webinars, view recent webinars on demand, or learn about sponsoring a webinar.

  *The Role of Service Delivery Platforms in M2M and IoT (May 20: Attend)
  *Unlocking Revenues with Carrier Ethernet 2.0 Wholesale E-Access (May 29:
  *How to Get the Best Out of DAS, LTE, Small Cells, and WiFi (June 5:
  *Diameter Signaling Control for LTE Networks (June 12: Attend)


N. America (West), Asia Pacific: Larry Howard,,

N. America (East), Midwest, L. America: Scott Coyne,,

EMEA, India, Singapore: George Stojsavljevic,,

Japan, South Korea, China, Taiwan:


Infonetics Research ( is an international market research
and consulting firm serving the communications industry since 1990. A leader
in defining and tracking emerging and established technologies in all world
regions, Infonetics helps clients plan, strategize, and compete effectively.
View Infonetics’ About Us slides at

Photos/Multimedia Gallery Available:



Infonetics Research
Stéphane Téral, +1-408-583-3371
Principal Analyst
Mobile Infrastructure and Carrier Economics
Twitter: @infonetics
Jeff Heynen, +1-408-583-3359
Principal Analyst
Broadband Access and Pay TV
Twitter: @JeffHeynen
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