Ovum-RHK’s analysis of second quarter 2007 revenue and capital spending by North American network operators shows that wireline operators decreased capital spending by 2 percent versus the second quarter of 2006 and mobile operator capital spending increased by 4 percent.
Revenue remained on trend with mobile revenue growing 12 percent growth, and fixed revenue basically flat versus last year, the report said.
“North American wireline capital spending in the first half of 2007 is down nearly 7 percent compared to last year, due largely to AT&T spending cuts resulting from it merger with BellSouth,” said John Lively, vice president of forecasting at Ovum-RHK. “Sprint and Qwest also cut spending, while Bell Canada, Embarq, Telus, and Verizon spent more than last year. Overall, Ovum RHK expects capital spending growth remain stalled through the rest of 2007 and into 2008.”
Some other findings of the report include wireline revenue steady at $43.6 billion; wireline capital expenditures at $7.1 billion, down 5.3 percent from 2006; mobile revenue of $36.7 billion, up 12 percent from last year; and mobile capital expenditures of $5.3 billion, up 4 percent over 2006.
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