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China, Europe to drive telecom network investment in 2014

20
Jan
2014

By Sven Nordenstam and Leila Abboud STOCKHOLM/PARIS (Reuters) – Telecoms network operators are expected to spend more on equipment for the second straight year in 2014, with China and Europe bringing a fresh spurt of growth as service providers need to build out high speed 4G mobile broadband networks. Market research group Gartner sees global sales of network equipment to carriers rising 6 percent to $85.4 billion this year, up from 3 percent last year. Asia, excluding Japan, should grow 7 percent, and Europe and North America 6 percent. The predictions are good news for Europes network equipment makers – Swedens Ericsson, Finlands Nokia and Franco-American group Alcatel-Lucent – but analysts do not expect a softening of brutal price competition with low-cost Chinese rivals.

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