According to Infonetics Research, driven by growth in the markets of India, China, Brazil, Russia, the telecom service provider capex will increase by 6 per cent globally in 2013. Further, the global service provider will achieve revenues worth $2 trillion in 2013.
The research firm states that despite slow growth in 2012, the global telecom industry is on growth path. The year 2013 is evolving to represent the third year of an investment cycle characterised by capped capex in the west, increase in tariffs in Japan, and strong growth in countries such as Brazil, Russia, India, and China resulting in six per cent year-over-year (y-o-y) growth in global telecom industry.
So far, large operators in Europe including Italia, Telefonica, and Vodafone have increased their capex y-o-y, indicating that they will make further investments to expand their networks despite witnessing decline in their revenues. Infonetics Research projects most equipment segments to grow in 2013, with the exception of voice, broadband aggregation, and video infrastructure. It forecasts that global telecom carrier capex will grow at a compound annual growth rate of 2 per cent from 2012 to 2017, reaching $355 billion.
