How Much will CSPs Spend on CapEx?

Two recent forecasts on telecom CapEx spending:

• Dell’Oro Group forecasts that the ".. trends for the combined Service Provider Telecom Equipment market comprising the Access, Carrier IP Telephony, Microwave, Mobile RAN, Optical, SP Routers, SP WiFi, and Wireless Packet Core markets, are set to improve between 2014 and 2019—the cumulative Service Provider Telecom Equipment market is expected to be $26 B higher than the comparative five-year period (2008-2013)".
  
  See "Telecom Equipment Sales to Increase by $26 Billion" - here
    

• ​ABI Research believes "global wireless capital expenditure (CAPEX) will remain flat in 2015, due to strong U.S. dollar impact on the purchase power of mobile operators and the regional unrest in Middle East and North African regions.
  
  As compared to 2014, ABI Research forecasts a slight decline of 0.6% in global CAPEX. North American operators such as AT&T and Verizon are expecting the percentage of CAPEX to revenue to decline in 2015 .. As multiple operators, such as Vodafone, Singtel, MegaFon, and Softbank, are currently testing 5G technology, ABI Research forecasts 5G to start around 2020, with capital expenditures anticipating 5G starts a few years ahead".
  
  See "Global Wireless Capital Expenditure Flat at US$194 Billion in 2015 with 5G Capital Planning in Sight" - here

ABI: Net Neutrality - a Risk for Telecom Vendors - Mainly in Fixed Networks

A recent report by Eric Abbruzzese, Research Analyst and Sam Rosen [pictured], Director, ABI Research, finds that "..Regulations on net neutrality have been at the center of attention recently throughout the world.Balancing the interests of businesses, governments, and consumers has been a challenge for all involved. In the United States, the Federal Communications Commission (FCC), with Chairman Tom Wheeler, is especially struggling to resolve a moderate proposal with President Obama’s public pro-neutrality stance [see "FCC: 'No blocking, no throttling, no paid prioritization'" - here]

The uncertain possibilities of neutrality regulation have impacted operators such as AT&T and Verizon, and vendors such as Cisco in the wireline broadband space, forcing a shift in priorities until regulations are finalized [see also "Attn: DPI Vendors - US Net Neutrality Vote on February" - here]

While the United States has the independent FCC at the head of neutrality decisions, groups in Europe and Canada are also facing difficult neutrality changes, with the European Council and the European Union (EU) parliament, as well as the Canadian Radio-Television and Telecommunications Commission (CRTC) leading decisions for the these regions. 

Carefully planning investments, and balancing wireline and wireless portfolios, will prove necessary for companies to continue to see success during this wireline-focused regulatory restructuring period .. Operators or carriers that have a heavy focus on wireline, such as CenturyLink or Cisco, may find it difficult to see growth with some regulatory outcomes, while companies with a more balanced portfolio, including Verizon, AT&T, and Ericsson will simply steer resources to the highest return markets". 

See "FCC Discussions on Net Neutrality Hampering Investment in Wireline Broadband, Steering Investment to Wireless" - here.