Telecoms service market on the up

Telecoms service providers were in the money last year with revenues reaching $1.85 trillion.

According to analysts at Ovum, the four percent hike was driven by strong growth in the mobile market in the BRIC (Brazil , Russia , India and China) economies.

The 2010 figures, which were also a rise from a dismal 2009 when revenues fell by four percent, gave a positive nod to more profits in the future. That will greatly affect operating cash flow and net profit margins.

With telecoms returning to sustainable growth, Vendors were also on the right path.

Ovum says that in the fourth quarter of 2010, carrier cap-ex (capital expenditure) rose two per cent when compared to the fourth quarter of 2009.

The cap-ex was the main sign the telecoms industry had survived the 2008 financial crisis, increasing year-on-year  from then.
This was more noticeable in South and Central America, which saw a cap-ex growth of 13 percent in the fourth quarter of 2010. The region has strong prospects for 2011.

The best performing of the larger vendors in 2010 included ZTE and Juniper, with 40 percent and 26 percent year-on-year revenue growth respectively.

Alcatel-Lucent and Ericsson didn’t do too badly, with year-on-year growth of 13 percent and 11 percent respectively, while Nokia Siemens Networks‘ (NSN) revenues in the fourth quarter of 2010 grew by 0.5 percent to hit $5.4 billion.