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Demystifying Opex & Capex Budgets - Feedback from Operator Network Managers Product Image

Demystifying Opex & Capex Budgets - Feedback from Operator Network Managers

  • Published: February 2007
  • Pyramid Research, Inc


  • Alcatel-Lucent
  • Ericsson
  • Motorola
  • Nokia-Siemens
  • MORE

Carrier capital expenditure (Capex) is undergoing a dramatic transformation under the combined effect of factors ranging from demand for additional capacity to convergence and network evolution towards next-generation networks (NGNs). The analysis of operator capital spending and the assessment of the business opportunity for telecoms OEMs has traditionally been confined to carrier spending on network infrastructure. As the size and allocation of operator Capex shifts dramatically in response to industry dynamics, the Opex line item in operator’s income statements has become a holy grail for vendors.

Today, mobile operators, for instance, spend three times more on Opex than Capex, or a total of US$400–500bn annually. Not all of that Opex spending is available to equipment suppliers and vendors, however. Although many operators have outsourced business functions such as IT, call centers, and other areas, Network Services is the focus of most of the outsourcing that pertains to the equipment supplier and vendor market. Today, Network Services is an US$80bn spending area; we believe that US$30–35bn of this is directly accessible by the major telecommunications READ MORE >

Section 1. Introduction to Operator Network Manager Survey
Scope and Methodology
Profile of Survey Respondents
Definition of Network Functions

Section 2. Opex Trends Across Mobile, Wireline Incumbent and Challenger Networks
Network Opex:Opex Ratio: Today and Over Three Years
Operator Attitudes to Managed and Hosted Services
Breakdown of Network Opex: Transmission, Core Network and Maintenance
Where Maintenance Opex Goes
Spare Parts Management: Conducted In-house or Outsourced?
Network Optimization Spend: Today and Over Three Years, Internal or Outsourced?
Operations and Process Consulting Services Opex Trends

Section 3. Capex Trends Across Mobile, Wireline Incumbent and Challenger Networks
Capex-to-Revenue Trend Over Three Years
Network Equipment Investment Trends
Capex Allocation to Network Design and Planning
Operator Spend on Civil Works
Backhaul Capex Trends
Capex Allocation to End-user Services Platforms, and Service Delivery Solutions
Charging and Payment Solutions Capex Trends
Investments in Network Management Systems and Network Assurance: Today and Over Three Years
Service Optimization and Assurance Capex Trends

Section 4. Key Takeaways

- Ericsson
- Alcatel-Lucent
- Nokia-Siemens
- Motorola

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