1H14 Capital Expenditure Report: Emerging Markets to Drive the Next Phase of Investment Growth

IDC Opinion

In This Study

Methodology

Situation Overview

United States

AT&T: Project VIP on Path to Completion

Verizon

Comcast

Europe (Western Europe and Central and Eastern Europe)

Telefónica: Increased Capital Programs in Latin America

Orange: Flat Capital Budget, But Substantial Uplift in 4G and FTTH

Deutsche Telekom: Increased Spending in the United States and Germany

Vodafone: Continued Capital Spending Driven by Project Spring Investment Program

Japan: 4G and Big Data Services Are a Key to Sustainable Growth

NTT: Continued Reduction in Spending for Increase in Margins

SoftBank: Post Network Buildout, Focus Shifts on to Maximize Capital Efficiency

Asia/Pacific (Excluding Japan): Telcos in Fast-Growing Markets Lead the Race to Accommodate Growing Data Traffic

China Mobile: Active 4G Network and Deepened Development of Four-Network Coordination

China Unicom: Accelerated 4G Investment in the Second Half to Launch Full Commercial Services Early Next Year

China Telecom: Creating "New China Telecom" with Enhanced Vitality and Return

Latin America: LTE/3G to Fulfill the Ever-Growing Need of Data Services in the Region

America Movil: Overall Capital Slowdown But Acceleration for 4G Network Investments

Middle East and Africa: High Growth Potential Market, But Uncertain Economic and Political Unrest Jeopardizing Operator Investments

Future Outlook

Forecast and Assumptions

Market Context

Essential Guidance

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Related Research

Synopsis

Table: Worldwide Telecommunication Capital Expenditure, 2011–2015 ($B)

Table: Worldwide Telecommunications Capital Expenditure by Region, 1H13–1H14 ($B)

Table: Worldwide Capital Expenditure in Reported Currency by Top 10 Carrier, 1H13–1H14 (B)

Table: U.S. Average and AT&T Capital Intensity, 1H11–1H14 (%)

Table: AT&T Wireless and Wireline Capital Expenditure, 1H12–1H14 ($B)

Table: Comcast Cable Communications Capital Intensity, 2012–2014 (%)

Table: Telefónica Group Capital Spending, 1H13 and 1H14 (€M)

Table: Telefónica Group Capital Spending, 2012–2014 (€M)

Table: Orange Group Capital Spending, 2012–2014 (€M)

Table: DT Capital Spending by Business Units, 1H13 and 1H14 (€M)

Table: DT Group Capital Spending, 2012–2014 (€M)

Table: Vodafone Group Capital Spending, 1H13 and 1H14 (£B)

Table: Vodafone Capital Investment Plan by Business Units, FY14–FY15 (£B)

Table: Europe Vodafone Capex Spending by Country, 1H13 and 1H14 (£M)

Table: AMAP Vodafone Capex Spending by Country, FY14–FY15 (£M)

Table: Japan Wireless and Wireline Annual Capital Expenditure, 1H11–1H14 (¥B)

Table: Japan 3G and LTE Subscribers, 1Q13–2Q14 (M)

Table: NTT Capital Spending by Operating Company, FY 1H12–FY 1H14 (¥B)

Table: SoftBank and Sprint Capex Spending as a Combined Entity, 1H12–1H14 ($B)

Table: SoftBank Capital Expenditure and Share by Service Type, 1H12–1H14 (¥B)

Table: Asia/Pacific (Excluding Japan) Wireless and Wireline Capital Expenditure, 1H10–1H14 ($B)

Table: China Mobile Capital Expenditure, 1H12–1H14 (RMB Billion)

Table: China Unicom Wireless and Wireline Capital Expenditure, 1H12–1H14 (RMB Billion)

Table: China Telecom Monthly Wireless Subscribers, December 2013–October 2014 (M)

Table: China Telecom Wireless and Wireline Capital Expenditure, 1H12–1H14 (RMB Billion)

Table: Latin America Capital Expenditure by Country, 1H13–1H14 ($M)

Table: Latin America LTE Networks by Country, Operator, and Band

Table: Latin America Capital Expenditure by Top 5 Carrier Group, 1H12–1H14 ($M)

Table: America Movil Group Capital Spending, 1H12–1H14 and FY14 (MXP Billion)

Table: Middle East and Africa Wireless and Wireline Capital Expenditure, 1H12–1H14 ($B)

Figure: Worldwide Telecommunication Capital Expenditure, 2010–2014

Figure: Total Capital Expenditure by Top 10 Carrier Group, 1H13–1H14

Figure: U.S. Wireless and Wireline Capital Expenditure, 1H12–1H14

Figure: U.S. Operators Capital Intensity, 1H12–1H14

Figure: AT&T Capital Expenditure and Growth, 1H12–2H14

Figure: AT&T Operating Expenditure and Growth, 1H12–1H14

Figure: Verizon Capital Expenditure and Growth, 2012–2014

Figure: Telefónica Capital Expenditure Share by Country, 1H14

Figure: Telefónica Capital Expenditures Growth Rate by Country

Figure: Orange Capital Expenditure Share by Country, 1H14

Figure: France Telecom Capital Spending Growth by Top Country

Figure: DT European Business Unit Capital Spending by Country, 1H14

Figure: Vodafone Europe Capital Spending by Country, 1H14

Figure: AMAP Vodafone Capex Spending by Country, FY14–FY15

Figure: NTT Group Capital Expenditure, FY 1H12–FY 2H14

Figure: NTT Group Capital Expenditure, FY12–FY14

Figure: SoftBank Japan Capital Expenditure, 1H12–1H14

Figure: SoftBank Japan Capital Expenditure, FY10–FY16

Figure: China Capital Expenditure Share by Operators, 1H12–1H14

Figure: China Mobile Capital Spending and Growth, FY10–FY14

Figure: China Mobile Basestations of 2G, 3G, and 4G, June 2014 and December 2014

Figure: China Mobile Capital Structure, 2014

Figure: China Telecom Annual Capex, FY10–FY14

Figure: America Movil Annual Expenditure, 2012–2015

Figure: America Movil Capital Spending Share by Country, 1H14

Figure: Middle East and Africa Capex by Country, 1H13 and 1H14

1H14 Capital Expenditure Report: Emerging Markets to Drive the Next Phase of Investment Growth

This IDC study analyzes the global telecom capital expenditure pattern for the first six months of 2014. While network operators in the technologically advanced markets are spending on 4G/LTE and fiber optic broadband to promote high-speed Internet among residential as well as business consumers, telcos in the faster growth markets are busy building and expanding 3G coverage along with primary network trials for LTE to achieve a common goal of improved margins under the surging demand for data.

According to Venkatesh Mahale, senior analyst, Worldwide Telecommunications Markets, "Operators' capex in the years to come will certainly increase but at a decreasing rate. And, the cut down of capex in regions such as North America and a part of Western Europe will be substituted by growth in emerging markets such as Asia/Pacific and Africa."

Please Note: Extended description available upon request.