China's 3G Buildout to Drive a Telecom Capex Increase
China's 3G Buildout to Drive a Telecom Capex Increase
25th February, 2009
US : Despite an overall economic contraction, network operator spending on telecom equipment in the Asia/Pacific region will rise slightly over the next 24 months, driven primarily by deployment of 3G networks in China, according to a new report from Pyramid Research.
"Capex in Asia/Pacific: Driven by 3G in China, Spending to Rise Despite Global Downturn" analyzes the drivers that make investing in infrastructure imperative for operators in Asia/Pacific. This 13-page report puts the revenue generated in Asia into a global context and looks at the plans for future capital expenditure (capex) in both developed and emerging markets in the region. The report also identifies and analyzes technology suppliers that are poised to win contracts in the competitive Asia/Pacific market. Three case studies on NTT DoCoMo, China Mobile, and Bharti Airtel focus on the capex plans of the main players in Japan, China, and India, providing metrics, such as capex, as a percentage of service revenue.
Despite anticipated declines in GDP for most countries in the Asia/Pacific region, operators throughout the region have stuck to their overall investment plans, with 4G and national broadband network investments leading the agenda, notes Tae-Hyung Kim, analyst at Pyramid Research and author of the report. "Markets such as Japan, Singapore, and South Korea are seeing an ever-increasing appetite for higher-bandwidth applications on mobile networks and increasing mobile broadband adoption rates," he says. "On the fixed side, governments of these developed markets are pushing operators to improve fiber access to households. In fact, these governments view spending on telecommunication infrastructure as a prudent long-term investment."
China's telecom operators will show the world's largest capex spending increases in 2009, Kim says. "All three operators - China Mobile, China Telecom, and China Unicom - are not only extending their 2G infrastructure to rural areas but also earmarking tens of billions of dollars for their new 3G networks. These trends play to the advantage of Chinese vendors such as Huawei and ZTE."
"Capex in Asia/Pacific: Driven by 3G in China, Spending to Rise Despite Global Downturn" is the second in Pyramid Research's Telecom Insider Report Series. Published monthly for each of the world's most dynamic regions, Telecom Insiders are packed with trend analysis, industry best practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you can leverage to make better business decisions.
Download an excerpt of this new report here: http://www.pyr.com/downloads.htm?id=5&sc=PR022409_IAP