Global Telecom Capex Maintains Strength in 2015 as Carriers Continue Network Investments

Global Telecom Capex Maintains Strength in 2015 as Carriers Continue Network Investments Image Credit: Dell'Oro Group

According to a recently published report from Dell’Oro Group, the global telecoms capex maintains strong spend levels this year despite increased uncertainty in the equity markets and continued downward revisions to global GDP outlook.

The research firm said that carriers continued to invest in their networks at a healthy pace in the first half of 2015 and the majority of the carriers have not made any material revisions to their 2015 guidance. 

Although Europe and China are strong contributors to the constant currency investment growth trends for 2015, the report outlines potential risks for 2016 driven primarily by reduced expectations for China Mobile and Vodafone.

Dell'Oro's findings for 2015 provide a more optimistic outlook for the sector following ABI Research's earlier forecast which predicts the global wireless Capex to remain flat at US$194 billion with a slight decline of 0.6% compared to last year.

Stefan Pongratz, Carrier Economics analyst with the Dell’Oro Group
The correlation between growth trends in the overall mobile and fixed telecom equipment market and carrier Capex weakened somewhat in 2H14 and 1H15, however, we attribute this more to currency fluctuations than an underlying shift in how carriers are allocating their investments. Exacerbated by the rising U.S. dollar, worldwide Capex fell nearly $10 B in 1H15, however, we estimate investments grew at a low-single digit rate in constant currency.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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