No slowdown in network operator spending evident in 4Q07, says Ovum

Wireline capex up 12% in 4Q07

For immediate release, 4 March 2008. Ovum today posted its analysis of fourth-quarter 2007 revenue and capital spending by North American network operators. Fixed telecom revenues were largely flat to down among top-tier service providers, although AT&T and Bell Canada eked out small gains. Despite the poor revenue growth, wireline telecom operator capex increased by 12.4% versus the fourth quarter of 2006. Cable MSOs saw revenues increase 13.6%, while holding spending growth to just 8.6%. Mobile revenues remained on trend, growing nearly 10%, while mobile capex fell 11.4%.

4Q07 highlights for North American network operators:

• Wireline revenues = $43.8 billion, up 1.2% versus 4Q06
• Wireline capex = $8.8 billion, up 12.4% versus 4Q06
• Cable MSO revenues = $17.3 billion, up 13.6% versus 4Q06
• Cable MSO capex = $3.7 billion, up 8.6 versus 4Q06
• Mobile revenues = $38.6 billion, up 9.8% versus 4Q06
• Mobile capex = $6.3 billion, down 11.4% versus 4Q06

"The fourth-quarter jump in wireline capex provided a year-end boost to 2007 equipment shipments," said John Lively, Vice President Network Infrastructure at Ovum. "North American switching and routing sales grew 23%, and optical networking grew 31% in the fourth quarter compared to last year. AT&T drove the growth in wireline capex, and Comcast was the big spender among cable MSOs. Mobile capex was held back by Sprint, which spent 37% less than a year ago, despite a 73% increase versus 3Q07. "

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For further information:

Full 4Q07 results and analysis for North America have been published by Ovum's Global Capex service. For further details, please contact prteam@ovum.com, or contact a member of our global PR team listed below. Ovum's Global Capex service provides consistent quarterly analysis and detailed annual forecasts of revenue and capital spending for North American, European, and Asian network operators.

About Ovum:

Ovum's primary activity is providing value-added advisory services and consulting to retain and project clients. The company acts as a well-respected and trusted source of industry data, knowledge and expertise on the commercial impact of technology, regulatory and market changes. Ovum engages in continuous research and industry analysis to determine market dynamics in its specialist sectors.

Ovum has developed long-standing relationships with many of its corporate clients, which include major international blue-chip companies such as Alcatel-Lucent, AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telekom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone.

Ovum is part of the Datamonitor Group.

Ovum's PR contacts:

North America:
Sara Kaufman
Tel: +1 617-722-4602
Email: sara.kaufman@ovum.com

EMEA:
Maria Di Martino
Tel: +44 (0) 20 7551 9238
Email: maria.dimartino@ovum.com

Asia-Pacific:
Tanisha Kuckreja
Tel: +61 3 9601 6723
Email: tanisha.kuckreja@ovum.com