Ovum Predicts Flat Capex for CSPs

Revenue growth rates for communications service providers (CSPs) remain modest, but CSPs will continue to invest heavily in their networks, expects Ovum.

With global CSP capital expenditures (capex) forecast to total more than $2.1tn from 2014–19. Global analyst firms say CSPs must continue to do less with more by leveraging new technologies, network designs, vendors, and operating models.

In a new report, Ovum reveals 2019 capex is projected to be $367bn, yet vendors face a tougher marketplace as spending is being pressured by modest revenue outlooks as growth remains weak for most carriers, particularly fixed carriers.

Also, the rise of more software- and IT-centric opportunities, driven by the emergence of SDN (software-defined networking) and network function virtualization (NFV), means traditional telecom vendors will come up against a different set of vendors going after CSPs’ network budget dollars.