Mobile Capex Drops

LONDON -- Ovum RHK today posted its analysis of third-quarter 2007 revenue and capital spending by North American network operators. Wireline operators increased capital spending by 7 percent versus the third quarter of 2006, while mobile operator capital spending plummeted 18 percent. Revenues remained on trend, with mobile revenue growing nearly 10 percent, and fixed revenue basically flat versus last year.

“Third-quarter growth in wireline capex provided welcome relief to equipment vendors, who experienced strong growth in the optical networking and switching and routing segments,” said John Lively, Vice President, Forecasting, at Ovum RHK. “Mobile capex hit a real pothole, led by Sprint Nextel. With mobile capital intensity at a seven-year low, however, there is room for a rebound in 4Q07.”

3Q07 highlights for North American network operators:

Ovum RHK’s global forecast of service provider capital spending will be updated in December.

Ovum RHK Inc.