Emerging markets in China and India are expanding at a dramatically faster rate than more mature markets in Europe and the U.S. with a significant jump in capex and in revenues for 2008 among carriers there, reports Infonetics Research. A declining dollar also has helped their bottom lines.
"(China and India) are still posting double-digit revenue growth in their native currencies which, converted into US dollars, creates a big spike in worldwide carrier revenue as well," said Stéphane Téral, a principal analyst at Infonetics Research.
Infonetics said large service providers' capital intensity (capex:revenue) in Europe and the U.S. is likely to be as low as 12 percent, as the market reaches a plateau this year.
Other significant points from the research include:
- Worldwide telecom service provider capex rose 7 percent last year to $248.8 billion;
- Revenue rose 10 percent to $1.5 trillion (much of the growth was due to the decline in the dollar); and
- Despite being restricted to mobile services until this year, China Mobile is now the world's eighth largest telco by revenue;
- See this Infonetics release