Capex and Equipment Market Update: 1Q09

Abstract

Wireline equipment sales fell 13% in 1Q09, with all segments down. There was strong capex growth in India, China, and South America, weak growth in Europe, and declines in North America and Asia-Pacific. Emerging markets will be key to growth in 2009.

Table of Contents

• Executive summary
• In a nutshell
• Ovum view
• Recession impact has arrived
• Emerging markets will be key for next 12 - 24 months
• Quarterly results
• Emerging markets show resilience in 1Q09
• Equipment sales show recession impact in 1Q09
• Vendor share, rank, and revenue

List of Tables

• Table 1: Operator revenues and capex, 1Q09 vs. 1Q08 (global)
• Table 2: Notes on operators for 1Q09
• Table 3: 1Q09 segment revenues versus 4Q08 and 1Q08 (global)
• Table 4: Top 15 wireline equipment vendors based on rolling 4Q sales as of 1Q09
• Table 5: Telecom wireline equipment vendor market share rank by segment
• Table 6: Telecom wireline equipment vendor revenues and share change

List of Figures

• Figure 1: Fixed network equipment revenue growth vs. year-earlier quarter
• Figure 2: Exchange rate changes over time, 1Q07 - 1Q09
• Figure 3: Telecom equipment market segment revenue trends (wireline)