May 1, 2003 -- (WEB HOST INDUSTRY REVIEW) -- A study released today by IDC (idc.com) reports that telecommunications carriers are making fundamental changes in how they are spending their capital. IDC's new study, Worldwide Carrier Capital Expenditure Forecast and Analysis, 1999-2004 (IDC #29269), analyzes the capital expenditure programs of the largest 57 fixed and wireless network operators in the world.
According to the report, carriers are increasing their spending on software and information technologies to deliver value-added services and improve their operational efficiencies. The report also finds that they are reducing the proportion of their capital expenditures devoted to network infrastructure hardware for access and transport capacity.
"Equipment providers should take note of this trend, but also keep in mind that capital expenditure trends vary markedly by region. In certain markets where infrastructure is poor, investment in telecommunications equipment continues,? said Mark Winther, vice president of worldwide telecommunications research at IDC.
IDC reports that wireless carriers increased their capital expenditure by 65% in 2000, nearly six times faster than fixed carriers. In 2002-2004, wireless carriers will reduce their capital spending budgets but will do so to a lesser extent than fixed carriers. Based on this investment trend, IDC finds that the telecommunications industry views wireless as a more attractive investment than fixed services.
IDC is a research and advisory firm that helps clients gain insight into technology and e-business trends.
