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</div> </div> </div> <div id="contentwrapper"> <div id="contentcolumn"> <div class="innertube"> <h1><a href="https://web.archive.org/web/20110325134129/http://www.cellular-news.com/story/46986.php">Overall Telecom CAPEX to Rise in 2011 Due to Video, 3G, LTE Investments</a></h1> <p class="body_text">By: <a href="https://web.archive.org/web/20110325134129/http://www.cellular-news.com/about_us/author.php?name=IanMansfield">Ian Mansfield</a> | <time datetime="2010-12-15 09:06:14Z">15th Dec 2010</p> <p class="body_text">璅rom its peak in 2008, worldwide service provider capex declined 5.3% in 2009, and is on track to decline another 3% in 2010, reports Infonetics Research. The dip in capex in 2010 is reportedly due mainly to the fact that carriers in China, which invested heavily in network upgrades in 2009, have completed their 3G rollouts.</p> <div id="inlineads" style="float:left; width:130px; height:250px;"> <p align="left"> <script type="text/javascript"> </script> <script type="text/javascript" src="https://web.archive.org/web/20110325134129js_/http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </p> </div> <p class="body_text">Infonetics Research forecasts a 1.6% pickup in <a href="https://web.archive.org/web/20110325134129/http://www.cellular-news.com/tags/telecom/">Telecom</a> carrier <a href="https://web.archive.org/web/20110325134129/http://www.cellular-news.com/tags/capex/">Capex</a> in 2011, marking the start of a new investment cycle</p> <p class="body_text">"Telecom capital expenditures are bottoming out at US$289 billion this year, and our cycle-based forecast model and conversations with service providers indicate that a new investment cycle will start in 2011 and last several years, with capex growing to US$321 billion in 2014 before growth slows again. Overall, capital intensities will continue to slowly decline through at least 2014 because the world's telecom infrastructure is essentially built out, and unless a nuclear bomb wipes out some of it, there is no need to increase capital intensities," expects St閜hane T閞al, principal analyst for mobile and FMC infrastructure at Infonetics Research.</p> <p class="body_text">Despite the overall decline in service provider capex in 2010, some telecom equipment segments are faring well, including <a href="https://web.archive.org/web/20110325134129/http://www.cellular-news.com/tags/video/">Video</a> infrastructure and IP routers/carrier Ethernet switches, which saw double-digit worldwide revenue increases in the first half of 2010.</p> <p class="body_text">Infonetics expects the major areas of investment from 2011 to 2014 to be fiber-based wireline broadband (FTTx), 2G mobile network capacity expansion, network migration from 2G to 3G, and migration to <a href="https://web.archive.org/web/20110325134129/http://www.cellular-news.com/tags/lte/">LTE</a> (mobile broadband will follow).</p> <p class="body_text">Finally, low equipment pricing resulting from fierce competition between western and Chinese vendors is giving service providers incentive to cap their capex budget and buy more equipment with lower budgets.</p> <p class="body_text"> <p align="center"> <script type="text/javascript"> </script> <script type="text/javascript" src="https://web.archive.org/web/20110325134129js_/http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </p> <div id="tools"><fieldset><legend>Page Tools</legend> <p><img src="https://web.archive.org/web/20110325134129im_/http://www.cellular-news.com/images/icon_mail.gif" width="24" height="11"> <a href="/web/20110325134129/http://www.cellular-news.com/emailer/recomend.php?uid=46986">Email this article to a collegue</a></p> <p><img 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