Ovum-RHK has announced its analysis of first quarter 2006 revenue and capital spending by North American network operators. Wireline operators increased capital spending by 22% versus the first quarter of 2005, despite a 6% drop in revenues. Mobile operators saw revenues rise 15%, and increased capital spending by the same amount.

1Q06 highlights for North American network operators:

-         wireline revenues = US$43.6bn, down 6% versus 1Q05

-         wireline capex = US$6.6bn, up 22% versus 1Q05

-         mobile revenues = US$31.9bn, up 15% versus 1Q05
mobile capex = US$4.7bn, up 15% versus 1Q05

"Broadband access network spending has been slowly gaining momentum, like a freight train, and now it is screaming down the track," said John Lively, Vice President, Forecasting, at Ovum-RHK. "However, revenue gains from access and enterprise data could not offset declines in the core business revenue of AT&T and Verizon. Those companies, which own the former long-distance operations of AT&T and MCI, respectively, both posted double-digit declines in revenue."

Ovum-RHK's analysis also reveals that top-tier wireline carriers in North America added a record 1.7mn high-speed access customers in the quarter, while mobile operators added a respectable 6.2mn subscribers.
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