Asia Pacific Service Providers Increase Capital Expenditures in 2003

Strategic Insights -

Asia Pacific service providers have bucked the global trend by increasing capital expenditures between 2002 and 2003, with capex totaling $44.2 billion in 2003, a 4% increase from 2002. This trend contrasts with European and North American carriers, which saw capex drops of 15% and 22%, respectively. The region's carriers also saw revenue growth of 13% between 2002 and 2003, and are expected to see another 13% increase in 2004.

Key Takeaways:

  • Asia Pacific service providers spent $44.2 billion on capital expenditures in 2003, a 4% increase from 2002.
  • European and North American carriers saw capex drops of 15% and 22%, respectively, between 2002 and 2003.
  • Asia Pacific carriers' revenue increased 13% between 2002 and 2003, and is expected to jump another 13% in 2004.
  • The region's carriers spent 20% of their revenue on capex in 2003, with a focus on investing in voice, optical, access aggregation, and other data network equipment to sustain a healthy capex-to-revenue ratio.
  • Kevin Mitchell, directing analyst for Infonetics Research, expects Asia Pacific carrier capex to increase another 4% in 2004.
  • North American service provider capex is expected to dip 2% in 2004, while European service provider capex will inch up 2% in the same period.
  • Infonetics Research's quarterly report presents revenue, capital expenditures, and capital expenditure-to-revenue ratios by individual service provider and by service provider type.
  • The report includes data on capital expenditures per provider type in eight categories, as well as subscriber information and installed manufacturers.

Sources:

  • Infonetics Research's Quarterly Service Provider Capex Analysis, Asia Pacific 2004
  • Infonetics Research's online service portal
  • Kevin Mitchell, Directing Analyst, Service Provider Networks and Next Gen Voice of Infonetics Research, Inc.

Statistics:

  • $44.2 billion: Asia Pacific service providers' capital expenditures in 2003
  • 4%: Increase in Asia Pacific service providers' capital expenditures from 2002 to 2003
  • 15%: Capex drop in European carriers from 2002 to 2003
  • 22%: Capex drop in North American carriers from 2002 to 2003
  • 13%: Asia Pacific carriers' revenue growth between 2002 and 2003
  • 20%: Asia Pacific carriers' capex-to-revenue ratio in 2003
  • 4%: Expected increase in Asia Pacific carrier capex in 2004
  • 2%: Expected decrease in North American service provider capex in 2004
  • 2%: Expected increase in European service provider capex in 2004