Infonetics: Asia/Pac Capex Hits $30B

LONDON -- Asia Pacific service provider revenue is increasing 15% from 2002 to 2003 to $139 billion, and capital expenditures are rising 3% to $30 billion, representing a capex-to-revenue ratio of 22%, according the Infonetics Research Service Provider Roll Call and CapEx Analysis, Asia Pacific 2003 report, one of six reports in a series that monitors service providers in North America, Europe, and Asia Pacific.

"After a down year in 2002 and a focus on stabilizing in the first half of 2003, our analysis shows that service providers in Asia Pacific are emerging from a difficult period with real revenue growth in key service areas, such as broadband and Metro Ethernet," said Richard Webb, lead analyst of the report. "For most service providers, caution remains the key, and network expansion will only come through success-based spending, driven by direct customer demand. However, now that revenue is moving in the right direction, capex growth is likely to follow in 2004."

Infonetics Research Inc.