Research: Telecom capex jumped 8 percent in 2006

Telecom operators in North America spent $68.6 billion on their networks last year, an increase of 8 percent from 2005, according to a new report from Infonetics Research.
The firm predicts carrier spending will increase 12 percent to $76.7 billion by 2010.
Infonetics said carrier spending increased despite several months of investment disruption created by strong merger and acquisition activity.
“The third year of the new investment cycle we identified previously is starting, and will plateau in 2009 or 2010,” said Stephane Teral, analyst at Infonetics. “The service-provider landscape that has emerged in North America is dominated by two giant telcos, AT&T and Verizon, and a cluster of powerful cable MSOs such as Cox, Time Warner and Comcast. As everyone is entering everyone else’s turf (telcos are offering IPTV, cable MSOs are offering VoIP, for example), the convergence between information technology, media, Internet and telecommunications is adding new competitive pressures that are driving this new investment cycle.”
The report said AT&T Inc., Sprint Nextel Corp. and Verizon Communications Inc. will make up 61 percent of total service-provider capex in North America this year.