Worldwide Telecommunications Industry Revenue to Reach $2.2 Trillion in 2013, says Insight Research

Capital expenditures (capex) by telecommunications service providers globally is expected to increase at a compounded rate of 1.5 percent, from $207 billion in 2012 to $223.3 billion in 2017, says a new market analysis report from The Insight Research Corporation.

According to the new market study, capex in the various global regions will be very uneven, with North America, Europe and the Latin American-Caribbean regions showing little or no growth and only Asia-Pacific and Africa continuing to make investments in telecommunications hardware and software to keep up with burgeoning customer demand for new services. "Telecommunications and Capital Investments: Impacts of the Financial Crisis on Worldwide Telecommunications, 2012-2017" notes that capex spending among fixed-line operators continues to decline, and the only growth in capex spending comes from the mobile operators in developing countries that continue increase their capital outlays to meet the pent up demand for service. And while demand for telecommunications services may be income inelastic and industry revenue may actually grow over the forecast period, services in every global region will nonetheless come under heavy pricing pressure as operators fight over the cost-conscious customers quite willing to delay new device purchases.