Yankee Group Forecast Shows Global Telecom Spending Rising for First Time Since Financial Crash

North America is the only region cutting spending.

BOSTON--(BUSINESS WIRE)-- The global telecom spending uptick has begun. A new Yankee Group report, “2011 Global Telecom Capex Forecast: Emerging Markets Drive Spending Recovery,” shows growth in telecom spending for the first time since 2009. In 2011, global capital spending will increase 2.9 percent over 2010. Yankee Group is forecasting capital spending increases this year across every region, except North America, which will be down slightly.

The report predicts the phenomenon behind the rebound in growth is pent-up consumer demand for mobile broadband services. Mobile operators around the world are entering a new network upgrade cycle driven by the rollout of 4G networks based on HSPA+, WiMAX and LTE. The rebound will also be seen in emerging telecom markets, where capital spending is required to bring both basic and advanced services to the masses.

“Now that we’ve passed through the worst of the macroeconomic doldrums, 2011 represents the beginning of a new cycle of capital spending in the telecommunications market,” said Brian Partridge, Yankee Group VP and co-author of the report. “As consumer demand for broadband connectivity continues to explode, we expect to see modest capex growth year over year through 2014.”

The report also indicates:

• China exceeds expectations. Despite predictions of aggregate capex decreases in the region for 2010, Chinese telecom operators showed remarkable resilience in 2010; this year, China Mobile, China Unicom and China Telecom combined will increase capital spending by 10 percent, from $35.3 billion to $38.9 billion.
• North American capex will decline by 3 percent. North American operators will decrease spending slightly, from $70.8 billion in 2010 to $68.7 billion in 2011, making North America the only region reducing capex in 2011.
• Capital spending will continue to rise through 2014. Global capex will increase from $275.7 million in 2011 to $302.2 million in 2014.

About Yankee Group

The people of Yankee Group are the global connectivity experts—the leading source of insight and counsel trusted by builders, operators and drivers of connectivity solutions for 40 years. Headquartered in Boston, Yankee Group has a global presence, including operations in Europe, the Middle East, Africa, Latin America and Asia-Pacific. Visit www.yankeegroup.com.

CONTACT:

Yankee Group
Ashlee Clevenger, +1-617-598-7268
mediarelations@yankeegroup.com

KEYWORDS:   United States  North America  Massachusetts

INDUSTRY KEYWORDS:   Technology  Telecommunications

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