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According to Ovum, global revenues climbed 11 per cent in 2Q11, and capex increased by 17 per cent on a year-over-year (YoY) basis, and annualised revenues globally reached $1.86 trillion for the four quarters that ended Q2, up five per cent on last year's figure.
'The revenue growth is a promising sign that the telecom recovery is on track,' report author and Ovum principal analyst, Matt Walker, says.
'These results should also please vendors, as the recovery in capex was strong in most regions. Some of the growth is due to a weak baseline in 2010, and some also due to exchange rate fluctuations, but we also see signs that carriers are gaining confidence to go ahead with network initiatives that had been delayed by the financial crisis.'
According to the Ovum, year-over-year capex growth was positive in all key regions, with only China and North America posting growth rates under 10 per cent, and Walker says that picture is not completely rosy and there were some disappointments, including North American where capex growth slowed compared to the first quarter and political turmoil affecting capex growth in the Middle East region.
However, Walker says that overall, the picture is not nearly as bad as 'stock market jitters might imply.'
On currency swings, Walker notes that between the second quarter of 2010 and the second quarter of 2011, the US dollar depreciated 17 per cent versus the Australian dollar, and 11 percent versus the Yen.
'These swings should not be ignored,' he said, emphasising that even the North American market - where exchange rate fluctuations are not an issue, and the macro economy has been under pressure in throughout 2011 - carrier revenues grew four per cent YoY in 2Q11, slightly faster than the 1Q11 growth rate.
