BOSTON-Capital expenditures are on track for double-digit growth in 2005 in North America, according to a third-quarter analysis from research firm Ovum-RHK.
- Mobile revenues clocked in at $ 30 billion, up 15 percent year-over-year;
- Mobile capex added up to $ 4.8 billion, up 10 percent;
- Wireline revenues totaled $45.8 billion, down 2 percent year-over-year;
- Wireline capex spending numbered $6.8 billion, up 14 percent year-over-year;
- Total operator revenues amounted to $76 billion, up 4 percent year-over-year; and
- Total operator capex was counted at $ 11.6 billion, up 12 percent year-over-year.
“These are bang-up results,” said John Lively, vice president of forecasting at Ovum-RHK. “This is the third quarter in a row that wireline capital spending has grown at a double-digit rates, and that segment is on track for annual capex growth in the 12- to 14-percent range. Mobile operator capex has also increased for the past three quarters in North America, and we expect full-year 2005 mobile capex to come in 20 percent over the 2004 level.”
Lively also noted that wireline spending is up despite no significant change in revenue trends, reflecting the commitment of operators to invest money in new revenue-generating services. The completion of the AT&T Corp. merger with SBC Communications Inc. and the MCI merger with Verizon Communications Inc. also should spur investment, since both AT&T and MCI had cut back on spending during the merger process.
