Who says the Bells aren't spending?

Capital spending by North American carriers this year - expected to be $30 billion - might be only half that of 2001, but the four regional Bell operating companies will invest nearly three-quarters of those dollars on potentially lucrative data services to replace eroding voice revenue.

The Bells' plans call for building nationwide backbones and points of presence to enter a long-distance market opened to them as they met demands of government regulations. Services on tap range from IP VPNs and IP Centrex to basic long-distance.

"These buildouts are as much defensive as offensive," says Thomas Nolle, president of consultancy CIMI. "By 2005 or 2006, voice will not be capable of funding the public network."

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Capital spending by North American carriers this year - expected to be $30 billion - might be only half that of 2001, but the four regional Bell operating companies will invest nearly three-quarters of those dollars on potentially lucrative data services to replace eroding voice revenue.

The Bells' plans call for building nationwide backbones and points of presence to enter a long-distance market opened to them as they met demands of government regulations. Services on tap range from IP VPNs and IP Centrex to basic long-distance.

"These buildouts are as much defensive as offensive," says Thomas Nolle, president of consultancy CIMI. "By 2005 or 2006, voice will not be capable of funding the public network."

Detailed reports

• Verizon
• SBC
• BellSouth
• Qwest
• Next-gen voice services
• Peeking at the RFPs