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Telco service provider revenues hit $US1.9 trillion in 2011

Telco service provider revenues hit $US1.9 trillion in 2011

Capex also sees growth, although is slowed by Q4 jitters

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Telecommunications service provider revenues passed the $US1.91 trillion mark in 2011 on the back of recovery in both fixed and mobile sectors, surpassing 2010 revenue which totalled $US1.79 trillion, according to analyst firm, Ovum.

Carrier capex also saw a rise in 2011, growing nine per cent to $US306 billion, although late-year economic jitters caused budget cuts and thus depressed growth rates.

These results for 2011 were in line with Ovum’s ‘service provider revenues and capex forecast spreadsheet: 2011-2017 (December 2011)’ forecast.

Ovum principal analyst, Matt Walker, highlighted that the top 10 capex spenders were AT&T and Verizon from North America, China’s three big carriers, NTT, and the European DT, Telefonica, Vodafone, and FT.

Despite the growth, some regions did under-perform.

“The only sizable 2011 surprise came in MEA, where actual revenue and capex were 10 and seven per cent lower than expected, respectively,” Walker said. “This is due partly to political volatility at year-end which affected some carriers’ expansion plans.”

North America’s revenues were two per cent above forecast, but a weak fourth quarter capex by Verizon and Sprint pushed it down to four per cent below.

“Sighs have emerged in 2012 of a slowly improving economy, and further improvement should help reach the revenue goal and capex growth targets of three and six per cent respectively,” Walker said.


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