Global telecom capex to go up in 2012, uncertainty looms over capex of Indian operators
Telecom Lead Asia: With rapid deployments of 3G and
4G-LTE networks, telecom operators capex will go up significantly this year and
expected to touch around the US$345 billion mark in 2015 and 2016 at around the
US$345 billion mark, according to Infonetics Research.
The market research study said that the global telecom
carrier capex grew 3 percent to $301 billion in 2011 from 2010. Telecom
operators around the globe increased their spending on every type of network
equipment grew in 2011, with the exception of TDM voice, which
continued its steep decline.
In terms of revenue, operators in Asia Pacific and EMEA
are the largest generators, each region with about a third of global revenue.
The global telecom service provider revenue grew 6 percent to $1.8 trillion in
2011 over 2010.
The key capex contributors in 2012 will
be Clearwire, Sprint,and T-Mobile USA in the US; NTT
DoCoMo and Softbank Mobile in Japan; and KT, LGU+,and SK
telecom in South Korea.
According to the market study, Asia Pacific was the
largest telecom carrier capex region in 2011, followed by EMEA (Europe, Middle
ABI Research, in its recent analysis said that Asian
telecom operator capital expenditure is expected to grow at 5.7 percent in 2012
compared to 29.1 percent in 2011.
Asian telecom capital expenditure in 2012 is forecast to
increase 5.7 percent year-on-year to $58.8 billion.
However, India particularly has lowered down its capex
plans for the upcoming quarters due to regularity uncertainty and policy
India’s leading teleco Bharti Airtel lowered its telecom
Capex by 48 percent to Rs 2,380 crore in fourth quarter of fiscal 2011-12 from
Rs 4,548 crore in same period previous fiscal.
Bharti Airtel spent Capex of Rs 465 crore in Q4 2011-12
for consumer business against Rs 1,669 crore in Q4 2010-11, showing a
significant drop of 72 percent.
Recently, Idea Cellular also lowered its Capex plan by
17.8 percent for FY 2012-13. Idea Cellular will reduce its FY 2012-13
Capex to Rs 3500 crore from Rs 4,250 crore in the previous fiscal.
It is expected that the lower capex will affect business
of telecom equipment vendors such as Ericsson, Nokia Siemens, Huawei, ZTE,
Huawei, Cisco, NEC, etc.