November 3, 2005, Boston --Infonetics Research published in the latest (Service Provider Capex Analysis) reports that, North America, Europe and the Asia-Pacific region public operators in the past two years has increased its capital expenditures and its capital expenditures in 2005 are expected to be achieved for the third consecutive year of growth.

It is expected that in 2005 the three areas operators will increase their capital expenditure to approach 190 billion US dollars, an increase of 6%, while in 2004 the annual growth rate of 9%,

Many capital expenditures to increase performance in Packet Voice,broadband, metro Ethernet and IP/MPLS routers, a new generation of technology investments. These three areas of capital expenditure balance, North America, Europe and Asia-Pacific account for about one third of the total.

Nfonetics chief analyst Kevin Mitchell said, "Given the current operator of its capital expenditures and revenues ratio stood at 15%, While emerging markets operators maintain higher capital intensity, so we expect 2006 will continue similar trends.

Mr. Mitchel continued Road " The operator of China and Korea in 2005 is to reduce capital expenditures. China's capital expenditures are expected to decline by 3%, mainly because of the massive expansion will slow, In past years, the Chinese operators of the capital-intensity of more than 30%, which is unsustainable rate. Overall capital spending in the Asia-Pacific region is growing most slowly. ¡±