North American wireline capex surges 22 percent in 1Q06. Mobile capex continues strong growth also, at 15 percent

Ovum-RHK: first quarter 2006 revenue and capital spending by North American network operators. Wireline operators increased capital spending by 22 percent versus the first quarter of 2005, despite a 6 percent drop in revenues. Mobile operators saw revenues rise 15 percent, and increased capital spending by the same amount.

1Q06 highlights for North American network operators:

• Wireline revenues = $43.6 billion, down 6 percent versus 1Q05

• Wireline capex = $6.6 billion, up 22 percent versus 1Q05

• Mobile revenues = $31.9 billion, up 15 percent versus 1Q05

• Mobile capex = $4.7 billion, up 15 percent versus 1Q05

Broadband access network spending has been slowly gaining momentum, like a freight train, and now it is screaming down the track. However, revenue gains from access and enterprise data could not offset declines in the core business revenue of AT&T and Verizon. Those companies, which own the former long-distance operations of AT&T and MCI, respectively, both posted double-digit declines in revenue.

http://www.ovum.com/go/content/c,377,64062