Telecom revenue to hit $1.8tr in 2011

Dylan Bushell-Embling

Global service provider revenue will reach $1.86 trillion in 2011, after growing nearly twice as fast  as during 2010, according to research.

Infonetics is projecting 7.6% higher spending in 2011, compared to a 4.1% increase in 2010.

The research firm expects revenues to continue to grow every year through to 2015, led by mobile broadband demand. By this time, global revenue will hit $2.17 trillion.

But the growing data demand will also ensure a continual increase in telecom capex, which is on track to grow 5.8% this year to $310.8 billion.

Asia-Pacific is the biggest spending market, and will remain so through to 2015, Infonetics said.  China Mobile, the world's largest mobile operator by revenue as of the end of 2010, will drive spending in the region.

But spending in Asia has been stable in 2011, compared to Latin America and Africa, where capex is on the rise.

Infonetics principal analyst Stephan Teral said the European debt crisis has so far had little impact on capex, and that this situation is likely to continue “as long as credit remains available to telcos at a fair price.”

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