U.S. Telecom Capex to Drop 7% in 2009

U.S. communications carrier capital spending will dip 7.3 percent in 2009, Yankee Group analysts now predict. That's less than the 10 percent figure some of us have speculated about, purely on a non-scientific “gut feeling” basis.

Actual declines will vary based on industry segment. Wireless investment is going to continue at healthier levels, as will broadband investments related to IPTV rollouts and broadband access generally. As you would predict, investments in legacy voice are going to be starved, by comparison.

Telecommunications carriers globally will chop about $12 billion from their capital budgets, decreasing their spending from $284 billion in 2008 to $272 billion in 2009.

Some observers will find that figure relatively heartening news, as it represents a bit more than a four percent dip, at least globally. And some regions and countries actually will increase spending, the Asia Pacific region in particular.

Globally, capex, as a percentage of revenue, will decline from 15.2 percent of revenues in 2008 to 14.1 percent in 2009.