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Categories: att NFV SDN Tmobile Verizon

#AT&T ’s CTO and president of AT&T Labs Andre Fuetsch this week said the carrier is planning on a decrease in capital spending in the next several years thanks to the benefits of its software-defined networking ( #SDN ) and network function virtualization ( #NFV ) efforts. “It’s certainly not going up,” Fuetsch said of AT&T’s capex figure at Nomura’s 2016 Media, Telecom and Internet Conference. “It’s certainly going down.” In the second quarter, AT&T said it spent a total of around $5.5 billion on capital expenditures across its businesses. Though the carrier didn’t break out capital expenditures on its mobility business, Wells Fargo Securities seems to have pegged the total around $2.7 billion. #WellsFargo Senior Analyst Jennifer Fritzsche said in a recent research note the top four carriers spent a combined $7.3 billion on capex in the second quarter, with known quantities of $2.8 billion from #Verizon, $1.4 billion from #T-Mobile and $376 million from #Sprint. According to Fuetsch, AT&T’s “downward trend” in network spending will come courtesy of “efficiencies we’re gaining from vitalization and software.” “As we deploy more and more virtual functions, and as the hardware that we’re running those virtual functions, as that becomes more commoditized, all those efficiencies we gain back,” Fuetsch explained. “We have the option of turning those investments back into the network or keeping those. So I would say, again, it’s hard to speculate here, but definitely a downward trajectory is what we’re looking at.”

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