Carrier Capital Expenditures

Capital expenditures (capex) remain the most closely-watched metric for determining the direction and level of investment that telecommunications carriers are making in network equipment and services. In turn, carrier capital spending is driven by the combination of two primary factors: the number of customers served by that carrier, and the volume of services demanded by those customers. This article analyzes the size, scope, and outlook of capital expenditures among telecommunications carriers in the U.S., and assesses the significance of capital expenditures for the carriers´ customers, equipment vendors, and investors. Written by John Celentano, a highly-regarded telecom marketing consultant, the paper´s findings and conclusions are based on a study of more than 50 wireline and wireless carriers that will spend a combined US$65 billion in 2008.