North American Telecom Carrier Capex Hits $63B in 2005

$132 billion
Total US business spending on telecommunications services in 2005, forecasted to grow to nearly $150 billion by 2010, according to Insight Research

Publicly owned telecom service providers in North America spent nearly $63 billion on capital expenditures in 2005, up 8% from 2004, and are projected to increase 4% to over $65 billion in 2006, according to Infonetics Research.

Of the capex going to telecom and datacom equipment, the top three investment areas are voice, mobile RAN, and optical equipment.

Capex-to-revenue ratio was 17% in North America.  With the recent wave of consolidation among ILECs, 56% of total capex will be owned by just AT&T and Verizon. Cingular capex jumped 117% from 2004 to 2005, as more investments were made in wireless equipment.

Other Highlights
  • The combined revenue of all public North American carriers inched up 2% in 2005 to $398 billion, and is expected to top $408 billion in 2006
  • Mobile subscribers increased 12% between 4Q04 and 4Q05 to 184 million;
  • DSL subscribers increased 36% to 22 million, while Cable Internet subscribers increased 21% to 26 million
 

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