North American Wireless Capex Grows Slower Than Operator Revenues

Ovum-RHK has posted its analysis of second quarter 2007 revenue and capital spending by North American network operators. Wireline operators decreased capital spending by 2 percent versus the second quarter of 2006, while mobile operator capital spending increased by 4 percent. Revenues remained on trend with mobile revenue growing 12 percent growth, and fixed revenue basically flat versus last year.

"North American wireline capital spending in the first half of 2007 is down nearly 7 percent compared to last year, due largely to AT&T spending cuts resulting from it merger with BellSouth," said John Lively, Vice President, Forecasting, at Ovum-RHK. "Sprint and Qwest also cut spending, while Bell Canada, Embarq, Telus, and Verizon spent more than last year. Overall, Ovum RHK expects capital spending growth remain stalled through the rest of 2007 and into 2008."

2Q07 highlights for North American network operators:

• Wireline revenues = $43.6 billion, up 0.2 percent versus 2Q06
• Wireline capex = $7.1 billion, down 5.3 percent versus 2Q06
• Mobile revenues = $36.7 billion, up 12 percent versus 2Q06
• Mobile capex = $5.3 billion, up 4 percent versus 2Q06

Ovum RHK's global forecast of service provider capital spending will be updated in September.

Posted to the site on 14th August 2007