The strengthening U.S. dollar will wipe out $20 billion in telecom capital expenditures during 2015, predicts a new Dell’Oro Group report.
Global telecom operators invested heavily in their fiber and LTE networks during 2014, marking the fourth consecutive year of capex growth as advancements in mobile-related spending offset declining wireline investment, the report said.
Stefan Pongratz, Dell’Oro Group carrier analyst, said his firm has not made any significant changes to its constant currency capex projections for 2015, and continues to expect the market will grow at a low single-digit pace for the year, driven mainly by China and Europe.
“But in U.S. dollar terms, assuming rates remain at current levels, the strengthening U.S. dollar will unequivocally impact telecom capex, and we have revised our 2015 capex in U.S. dollar terms downward rather significantly to adjust for currency fluctuations,” added Pongratz.
Dell’Oro Group’s Carrier Economics Report provides coverage of carriers’ revenue, capital expenditure and capital intensity trends. The report also provides actual and forecast details by carrier, region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa), country (United States, Canada, China, India, Japan and South Korea) and by technology (wireless/wireline).
Bharti Airtel ordered to pay couple for lack of service
India’s Bharti Airtel must pay $621 to a couple in Delhi who allege that the telecom major did not provide them Internet, TV and broadband connection despite being paid for the services.
Central Delhi District Consumer Disputes Redressal Forum asked Bharti Airtel to pay the couple the money as compensation, to cover legal costs and as a refund, according to The Economic Times.
“It appears to us that exasperated by the ‘devil may care’ attitude of the opposite parties (Airtel), the complainants (couple) have approached this forum with the present complaint,” the bench was quoted as saying, adding that Bharti Airtel did not respond to letters sent by the couple.
The court called the company “grossly deficient” in rendering services and said it made matters worse by not explaining the absence of an immediate refund.
“It speaks volumes about the matter in which amounts were being collected from the customers without any service being provided to them. We cannot help observing that a number of such customers may not have approached this forum for redressal of their grievances,” the forum said.
Meanwhile, Bharti Airtel denied any deficiency of service on its part.
