Analysys International has reported that total capital expenditure (CAPEX) of China telecommunication carriers will reach US$25.6 billion (excluding 3G CAPEX) in 2006, representing a decrease of 1% year over year. According to the report, Chinese telecommunication operators will increase capital expenditure on GSM networks, new business/technology development, and IT information systems/support systems in 2006, while decreasing expenditure on CDMA and PHS.
Analysys International says China Telecom's capital expenditure will reach US$6.8 billion (excluding 3G CAPEX), decreasing 6.8% compared with 2005. China Netcom's CAPEX in 2006 will reach US$3.6 billion (excluding 3G CAPEX), increasing 2% YoY.
China Unicom's CAPEX in 2006 will reach US$4.4 billion, decreasing 12.5% over the year 2005. China Mobile's CAPEX in 2006 will reach RMB US$9.9 billion (excluding 3G CAPEX), increasing 16% YoY. The CAPEX forecast of China Mobile is smaller than China Mobile's own announcement of US$10.4 billion CAPEX. Analysys International says China Mobile's own CAPEX forecast includes implicit 3G expenditure.
As 3G expectations increase, China Telecom and China Netcom will reduce investments on PHS. Analysys International is expecting China Telecom to reduce PHS expenditure from US$1 billion in 2005 to US$387 million in 2006, decreasing 62% YoY. China Netcom's PHS expenditure is expected to reach US$437 million in 2006, decreasing 30% YoY."
Posted to the site on 28th April 2006
Posted to: www.cellular-news.com/story/17161.php