Huge Telecoms Revenues But Small Capex

The sheer scale of telecoms service revenues never ceases to amaze.  Asian telecoms service revenue will grow by  $94 billion or 29% from $229.7 billion in 2011 to reach $323.7 billion by 2016, according to AnalysisMason.

In the US, the growth for the same period is expected to be from $287 billion in 2011 to $662 billion in 2016.

 In Europe, the European Telecommunications Network Operators’ Association says 2011 revenues are €270 billion.

 In China, overall telecoms revenue will grow from $138 billion in 2011 to $194 billion in 2016, says AnalysisMason.

 For the world, Infonetics puts 2011 carrier revenues at $1.86 trillion

 The surge is coming from Asian mobile usage. Asian mobile handset data revenue is expected to grow at a CAGR of 20%+ in the 2011-16 period, says Analysys Mason, as active mobile penetration rates  rise to 95% by 2016, a 32% increase on 2011 levels.

Yet, set against revenues of nearly $2 trillion,  worldwide investment in infrastructure will only be $40 billion this year, says IHS at a time when a new generation of technology, 4G/LTE, needs to be deployed.

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