In a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, despite increased uncertainty in the equity markets and continued downward revisions to global GDP outlook, worldwide telecom capex maintains strong spend levels in 2015. Carriers continued to invest in their networks at a healthy pace in the first half of 2015 and the majority of the carriers have not made any material revisions to their 2015 guidance.
Although Europe and China are strong contributors to the constant currency investment growth trends for 2015, the report outlines potential risks for 2016 driven primarily by reduced expectations for China Mobile and Vodafone.
“The correlation between growth trends in the overall mobile and fixed telecom equipment market and carrier Capex weakened somewhat in 2H14 and 1H15, however, we attribute this more to currency fluctuations than an underlying shift in how carriers are allocating their investments”, said Stefan Pongratz, Carrier Economics analyst with the Dell’Oro Group. “Exacerbated by the rising U.S. dollar, worldwide Capex fell nearly $10 B in 1H15, however, we estimate investments grew at a low-single digit rate in constant currency”, continued Pongratz.
The reports maintains its previous 2015 projections and continues to expect a high-single digit decline in carrier Capex and revenue in U.S. Dollar terms while investments and revenue are expected to grow at a low-single digit rate in constant currency.
The Dell’Oro Group Carrier Economics Report provides in-depth coverage of carriers’ revenue, capital expenditure, and capital intensity trends. The report provides actual and forecast details by carrier, by region by country (United States, Canada, China, India, Japan, and South Korea), and by technology (wireless/wireline). To purchase this report, please contact Matt Dear at +1.650.622.9400 x223 or email Matt@DellOro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.