mannerisms

Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.

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.

Tags: cagr, infrastructure, mobile penetration, penetration rates, trillion

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