New Opportunities for Vendors Emerge as Global Capex ReboundsYankee GroupSeptember 27, 2006 16 Pages - SKU: YANL1370963 |
| This Yankee Group Report focuses on the global trends for carrier capital and operational expenditure intensity. To understand how these metrics have evolved during the past 5 years, it is important to understand how spending has changed relative to revenue. As a result, we averaged these financial metrics against carrier revenue. Although capex spending may be increasing in absolute terms, the important question for vendors is whether capex is growing faster than revenue. Those carriers with capital expenditures that are keeping pace with or declining relative to revenue growth do not represent the same level of opportunity for vendors. They are spending their capex dollars on maintaining and operating their network rather than on undergoing a major network upgrade. The global equipment rebound, which is one component of capex, and the growth seen in international regions; it also displays our forecast for regional equipment spending for 2006 through 2008. This rebound is especially pronounced in Asia-Pacific, which has seen a significant growth in both its industrialized and emerging markets—most notably Japan, Korea and China. Growth is also very strong in the North American and EMEA regions. |
