The quick pullback in capex that began in late 2008 is paying off, but global SP revenues are still declining year over year (YoY), and service providers have been unable to cut opex fast enough to offset revenue erosion
YoY revenue change turned negative in 4Q08 and remains there; capex cuts have averaged 2-3x the revenue drop but opex is harder to tackle. Result is continued capex cuts for many carriers
Global capex/revenues ratio (capital intensity) fell from 18.6% in 2Q08 to 15.5% in 2Q09
Despite a big spending increase in China and scattered stimulus spending packages elsewhere, all four regions (NA, SCA, EMEA, AP) saw capital intensity drop from last year
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