European telecom CapEx review
Reading Gridstone’s research interesting article of the asian telecom capex review, and following my previous post related to Capex investments in telecom operators, I see similarities with some findings obtained in one of our latest assignments.
Capex as a percentage of revenue for countries in Asia-Pacific has slowed down in CY07 in regions with high wireless penetration as well as moderate penetration. The decrease can be attributed to high penetration leading to a slowdown in network expansion. An overall average of the seven wireless companies in Asia-Pacific places capex as a percentage of revenue at 19% for the nine months of CY07, compared with 23% in CY06.
Capex as a percentage of revenue for companies providing wireline services in Asia-Pacific has shown a declining trend over the past two years. An overall average of the six wireline companies in Asia-Pacific places capex as a percentage of revenue at 18% for the nine months of CY07, compared with 20% in CY06.
Please take a look at the next slide and check similarities. It seems it’s not just a question of the Asian market, right?
Enjoy the reading.Best