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Report: Carrier Capex to Grow to US$61B

North American service providers' capital expenditures were just under US$58 billion in 2004, an increase of a frac...


April 7, 2005  


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North American service providers’ capital expenditures were just under US$58 billion in 2004, an increase of a fraction of a percent from 2003, and are projected to increase 5% to US$61 billion in 2005, according to Infonetics Research Inc.’s bi-annual Service Provider Capex Analysis, North America report.

“We saw some meaningful changes in the North American capex environment in 2004, with aggregate spending holding steady after three years of drastic cuts and ILECs increasing their investments,” said Kevin Mitchell, directing analyst for Infonetics.

“Another noteworthy trend is how fast mobile subscribers are closing in on access lines with mobile subscribers now at 90% of PSTN lines, up from 77% at the close of 2003. North American mobile subscribers grew 13% between 4Q03 and 4Q04, from 145 million to 164.3 million. We could easily see mobile overtake access lines in 2005.”

According to the report, DSL subscribers increased 44% between 4Q03 and 4Q04 to 16.5 million and cable Internet subscribers increased 27%.

North American carrier revenue is projected to be flat in 2005 after inching up in 2004.