Verizon Wireless and T-Mobile US Inc. have already upped capital expenditure (capex) on network infrastructure, writes Jefferies Analyst George Notter in a note. He predicts that spending by AT&T Inc. (NYSE: T) and Sprint Corp. (NYSE: S) will start to speed up too:
- Our checks indicate that, while Q1 was generally slower-than-expected, vendors are exceedingly bullish about prospects for the full year. We note that 2012 could be the first year in recent memory where all of the major operators in North America are spending aggressively at the same time. We think that Q2 and Q3, in particular, look very strong. We wouldn't be surprised if Q4 follows seasonal norms in 2012 with some modest slowing of spending into year-end.
LTE is the focus of much of the spending for the operators. Notter suggests:
Why this matters LTE appears to be finally making a large capex impact across the board for all major operators in the U.S. Jefferies notes that this should be good news for vendors such as Alcatel-Lucent (NYSE: ALU), Adtran Inc. (Nasdaq: ADTN), Ciena Corp. (NYSE: CIEN), Juniper Networks Inc. (NYSE: JNPR) and Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA), among others.
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— Dan Jones, Site Editor, Light Reading Mobile