Carriers Post Flat 4Q Sales, Increase Capex Spending

North American carriers posted mostly flat sales numbers during the fourth quarter of 2007, although capex spending increased over the fourth quarter of 2006.

That’s according to research firm Ovum, which released its analysis on Tuesday.

“North American switching and routing sales grew 23 percent, and optical networking grew 31 percent in the fourth quarter compared to last year,” said John Lively, vice president of network infrastructure for Ovum.

Lively added that AT&T Inc. drove wireline capex growth, while Comcast Corp. was “the big spender among cable MSOs.”

Meanwhile, said Lively, “Mobile capex was held back by Sprint, which spent 37 percent less than a year ago, despite a 73 percent increase versus 3Q07.”

Overall, though, mobile sales jumped 9.8 percent over the previous year.

Wireline capex grew by 12.4 percent, compared to the fourth quarter of 2006, Ovum found. Cable MSOs held capex spending at 8.6 percent and saw sales rise by 13.6 percent.

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