Wireline operators decreased capital spending by 9% versus the first quarter of 2006, while mobile operator capital spending increased slightly. Revenue trends continued, with fixed down slightly and mobile up by 11% over the same period a year ago.

1Q07 highlights for North American network operators are:

wireline revenues - US$42.7bn, down 2% versus 1Q06;
wireline CapEx - US$6.0bn, down 9% versus 1Q06;
mobile revenues - US$35.4bn, up 11% versus 1Q06;
mobile CapEx - US$5.1bn, up 2% versus 1Q06.

“Access network deployment has reached a steady state and North American wireline capital spending is entering a period of stability,” said John Lively, Vice President, Forecasting, at Ovum-RHK. “Continued erosion of fixed network revenues will constrain future CapEx increases. Ovum-RHK expects capital spending to continue at this level throughout 2007 and edge slightly lower in 2008.”