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.