Reverse trend: Wireline capex spend up, wireless down in N. America

Mobile capital expenditures fell at the close of 2006, while wireline spending increased, bucking the traditional trend of wireless spending outpacing spending on wireline networks.
Research firm Ovum-RHK found North American wireline operators increased capital spending by 8 percent to $7.9 billion during the fourth quarter compared with the fourth quarter of 2005. Spending increased despite declines in wireline revenues of between 5 and 6 percent to $43.2 billion from the year before, said the report.
And while wireless carriers showed revenue increases of 13 percent during the fourth quarter-to $35.3 billion-mobile capital spending fell 8 percent to $6.5 billion during the quarter vs. the same period in 2005, said Ovum.
“North American wireline operators continued a high level of spending in the fourth quarter, as the access network rollout continued,” said John Lively, VP of forecasting at Ovum-RHK. “Ovum-RHK expects capital spending to continue at this level throughout 2007 and into 2008.”