Telecom firms capital expenditure on infrastructure equipment for new communication networks will climb slightly to $85.4 billion in 2002 from $85.1 billion in 2001, UBS Warburg predicts.

Capital expenditure in Western Europe is expected to grow by 21% to $26.5 billion, while North American service providers will increase their expenditure by a mere 3% from 2001. In Asia Pacific these expenditures will total $33 billion.

In a report posted today the Swiss investment bank is doubtful new services on 3G cellular communication networks will increase capital expenditures in the global telecom sector.

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