Declining capital expenditure will continue until 2004, says Merrill

摘要

Investment bank Merrill Lynch expects to see a decline in the capital expenditure of fixed and wireless operators in the European, Americas and Pacific regions until 2004 due to a "limited access to capital markets and an industry-wide need to preserve cash and repair balance sheets". Capital expenditure pressures are expected to remain severe in 2002 and 2003. But though capital expenditure will decline, capital intensity - the measurement of capital expenditure in relation to forecast sales - will remain steady at 20 and 19 per cent in 2002 and 2003, respectively. This leads the bank to expect capital expenditure to grow again in 2004, provided no further major changes occur in the demand for services and bandwidth pricing.