Monday, June 10, 2019

U.S. ISP Capex Rose $3 Billion in 2018

U.S. service provider capital investment increased by approximately $3 billion in 2018, according to US Telecom.

USTelecom estimates that U.S. internet service providers  invested $75 billion in 2018, up from $72 billion the prior year, and up $6 billion from the 2016 low US Telecom says was the result of common carrier regulation.

Preliminary Data Show Continued Upward Momentum for Broadband Investment

“The decline in capital investment starting in 2015 and the recovery that started in 2017 suggest the likelihood of a negative regulatory impact from the 2015 utility classification of broadband providers and, conversely, a positive impact from a return to a more forward-looking policy environment in 2017,” US Telecom says.

The caveat is that “many factors affect company investment decisions, such as macroeconomic conditions, technological developments, capital costs, taxes, competitive upgrade cycles, and regulation,” US Telecom also says.

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