Telecoms service provider revenues grew by four per cent in 2010 to reach $1.85 trillion, according to new figures from analysts Ovum. The company adds that this was driven by strong growth in the mobile market in the BRIC (Brazil, Russia, India and China) economies.
In 2009, revenues fell by a corresponding four per cent.
Although service provider capex declined by three per cent in 2010, this was an improvement from the nine per cent capex decline in 2009. Ovum says that in the fourth quarter of 2010, carrier capex actually rose two per cent when compared to the fourth quarter of 2009. Matt Walker, Ovum principal analyst and author of the report, commented:
“This late pick-up of capex in 2010 drove the full-year results. There is usually a fourth quarter budget flush, but 2010 was stronger than 2009, when most carriers remained jittery. Vendors who have faced several quarters of lean times are certainly happy to see the capex tap turned on again. It’s too early to break out the champagne just yet, but within the context of a slowly improving global economy, the telecoms sector is returning to sustainable growth.”
Ovum adds that most of the big vendors enjoyed healthy top-line year-on-year growth for the fourth quarter of 2010, with the best performers being ZTE and Juniper. Alcatel-Lucent and Ericsson also did well with double-digit growth.
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