Telecom Service Provider Investment (CAPEX) Analysis Market – Snapshot
The telecom service provider investment (CAPEX) analysis report provides detailed information about CAPEX spending of telecom service providers on various telecom equipment they buy from OEM’s and Engineering, Procurement and Construction (EPC) companies. Telecom service providers are looking to invest in various software platforms and hardware that will enable them to operate in the digitized ecosystem and help them to optimize their network and enhance the customer experience.
The rise of the fifth generation of cellular technology is expected to drive telecom service providers’ CAPEX in the coming years. 5G technology is currently in the testing phase and is expected to be launched fully in the next few years. Telecom service providers are setting aside significant amounts of capital in order to accelerate network deployment and increase their network capacity.Moreover, rapid development in terms of research activities with respect to innovative telecom equipment and services by equipment manufacturers is allowing telecom service providers to deploy or launch their 5G services as per their intended schedule. Rise in demand for 5G connectivity has led to a rise in investment from telecom service providers in every zone. 5G connectivity is likely to enhance network performance tenfold as compared to the current level in terms of network throughput, latency, reliability, etc. To achieve this, telecom operators will have to proactively invest in 5G infrastructure. The spending would be mainly for new spectrum, RAN infrastructure, and transmission networks. However, this new approach of network and asset sharing is one of the factors that is leading to low capital investment of Telecom Service Providers (TSPs).
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Capital expenditure spending of telecom service providers is bifurcated on the basis of vendor type, equipment type, services, and network type. Vendor type segment is further bifurcated into OEM’s and Telcos/EPC’s. Based on vendor type, telecom operators are expected to spend more on OEM’s. This is due to the increasing number of partnership deals between them to support the smart city initiatives undertaken by governments.
Equipment covered in the study are telecom hardware, and IT or non-telecom hardware. Telecom hardware includes aggregation equipment, wireless infrastructure, IP routers and CES, optical equipment, TDM voice infrastructure, and other telecom/datacom network equipment. IT or non-telecom hardware includes batteries, control hardware, etc. On the basis of services, telecom service provider CAPEX spending is bifurcated into EPC and others. Others segment is further dividedinto consulting, network design and engineering, installation & maintenance, and testing & optimization. On the basis of network type, the spending is bifurcated into wired and wireless. Telecom operator CAPEX spending is majorly seen in wired network connectivity services. This is due to the fact that operators are trying to mark their presence in untapped markets and expand their network coverage. This expansion of network capacity and coverage will require operators to increase their investment in the equipment and services required for the same.
In terms of region, the study has been divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America.The market in Asia Pacific is expected to account for a larger share during the forecast period. This is attributed to the many untapped markets in this region. Moreover, along with large population, demand for connectivity services is also significantly growing, thus providing an opportunity for telecom operators to enhance their revenue streams. More number of carriers in Asia Pacific is also one of the reasons for Asia Pacific to have a larger share in telecom operator spending.
Telecomservice provider (CAPEX) analysis study include CAPEX spending of China Mobile Ltd.,Verizon Communications, Inc., AT&T, Inc., Vodafone Group Plc., Nippon Telegraph & Telephone Corporation, Telefonica S.A., America Movil, China Telecom, SoftBank, Deutsche Telekom and other TSP’s.Furthermore we have also analyzed various OEM’s and EPC’s. Some of the leading OEM’s included in the company profile section includes Cisco Systems, Inc., Nokia Corporation, Huawei Technologies Co., Ltd., ZTE Corporation, and others.
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