Mobile Operator Capital Expenditures Analysis

Historical and Projected CAPEX Based on Regions, Network Components, Services, and Mobile Technologies



CAPEX investment represents 20%—30% of total cost of ownership for mobile operators, yet this crucial cost function directly affects 70%—80% of the OPEX. This highlights how important it is for operators to understand the state-of-the-art of the next generation network, so as to make intelligent infrastructure investment decisions. Meanwhile, network infrastructure vendors need to understand the spending behavior of their customers (operators) if they are to produce solutions that add value. This study highlights the critical market drivers and the latest trends influencing capital expenditure investments by mobile operators worldwide. It examines the key elements of a mobile network that require CAPEX investment, and analyzes the differences in priorities based on the mobile industry’s development in different regions. The report also assesses the technological aspects of each mobile network component by examining vendors’ state-of-the-art innovations, so as to offer the reader a clear picture of the steps required to make the transition from one evolution to the next. ABI Research has examined the historical trends in mobile operators’ CAPEX investments, and breaks down the long-term forecasts for mobile CAPEX by geographical region, as well as by technologies based on services, mobile technologies and components.


What Questions Does This Report Answer?
  • What are the current and future mobile landscapes in different regions?
  • What are the key market drivers for operators’ CAPEX expenditure?
  • What are the state-of-the-art-innovations for next generation network and 4G?
  • What types of innovation have vendors implemented for cost reduction?
  • What are the preferred means for CAPEX reduction?
  • What is the CAPEX percentage distribution for different network infrastructure components, services and mobile technologies on global and regional scales?
  • What recent contracts have been won by vendors?
Who Needs This Report?
  • Equipment/infrastructure vendors
  • Mobile operators
  • Regulators/government bodies
  • Financial institutions involved with mobile communications
  • Venture capitalists and other investors


Section 1.
EXECUTIVE SUMMARY
1.1 Overview
1.2 Definitions
1.2.1 CAPEX
1.3 OPEX
1.4 CAPEX Key Drivers
1.5 CAPEX Reduction Means
1.6 World Market Forecasts
1.6.1 World CAPEX Forecast by Region
1.6.2 World CAPEX Forecast by Mobile Technologies
1.6.3 World CAPEX Forecast by Network Components
1.7 Strategic Recommendations
1.7.1 Mobile Network Infrastructure Vendors
1.7.2 Mobile Network Operators

Section 2.
MOBILE NETWORK CAPEX REQUIREMENTS
2.1 Mobile Network Criterion
2.2 Key Aspects of Mobile Network & Cost Assessment
2.2.1 Radio Access Network (RAN)
2.2.1.1 Base Transceiver Stations (BTS) / Node B / eNodeB
2.2.1.2 Base Station Controller (BSC) / Radio Network Controller (RNC)
2.2.2 Core Network
2.2.3 Backhaul Infrastructure
2.2.4 Service Delivery Platforms
2.2.5 IMS Platforms
2.2.6 Engineering, Installation, Cabling and Other Expenditures
2.2.7 In-Building Wireless Solutions
2.3 Key Findings

Section 3.
KEY DRIVERS AND TRENDS IN CAPEX
3.1 Mobile Evolution: 2G to 3G to 4G
3.2 Spectrum Allocation Trend
3.3 In-Building Wireless
3.4 All IP Platform: Non IP to Softswitch IP to IMS
3.5 Fixed Mobile Convergence
3.6 Data Services
3.7 Initiatives to Contain CAPEX
3.7.1 Network Sharing
3.7.2 Managed Services
3.7.3 Multi-standard Seamless Networks
3.7.4 IMS and IP Network Infrastructure
3.8 Key Findings

Section 4.
KEY INDUSTRY PLAYERS:
4.1 Nokia Siemens Networks
4.1.1 Key Offerings
4.1.2 3 Recent Contracts Won
4.2 Nortel Networks
4.2.1 Key Offerings
4.2.2 3 Recent Contracts Won
4.3 Ericsson
4.3.1 Key Offerings
4.3.2 3 Recent Contracts Won
4.4 Alcatel-Lucent
4.4.1 Key Offerings
4.4.2 3 Recent Contracts Won
4.5 Motorola
4.5.1 Key Offerings
4.5.2 3 Recent Contracts Won
4.6 Huawei
4.6.1 Key Offerings
4.6.2 3 Recent Contracts Won
4.7 ZTE
4.7.1 Key Offerings
4.7.2 3 Recent Contracts Won
4.8 Key Findings

Section 5.
MARKET FORECASTS METHODOLOGIES
5.1 Forecast Methodologies
5.1.1 Mobile CAPEX Definitions
5.1.2 Calculation Steps for Operator and Regiona-level Mobile CAPEX per Service Revenue
5.1.3 Calculation Steps for Regional Service Revenue
5.1.3.1 Mobile Subscriber Forecast
5.1.3.1.1 New Product Diffusion Model
5.1.3.1.2 Deriving Growth Coefficients
5.1.3.1.3 The New Product Conundrum
5.1.3.1.4 The 3G Adoption Rate Debate
5.1.3.1.5 Using Analogical Products as Baseline
5.1.3.2 ARPU Forecast
5.1.4 Mobile CAPEX Analysis by Network Components and Mobile Technologies

Section 6.
REGIONAL MOBILE MARKET LANDSCAPES AND
6.1 Asia-Pacific Mobile Market Landscape
6.1.1 China Mobile
6.1.2 NTT Docomo
6.1.3 Bharti Airtel
6.1.4 Asia-Pacific CAPEX Forecast by Mobile Technologies
6.1.5 Asia-Pacific CAPEX Forecast by Equipment Types
6.2 Europe Mobile Market Landscape
6.2.1 Vodafone Group
6.2.2 France Telecom Group
6.2.3 Western Europe CAPEX Forecast by Mobile Technologies
6.2.4 Western Europe CAPEX Forecast by Equipment Types
6.2.5 Eastern Europe CAPEX Forecast by Mobile Technologies
6.2.6 Eastern Europe CAPEX Forecast by Equipment Types
6.3 North America Mobile Market Landscape
6.3.1 Sprint Nextel
6.3.2 Rogers Wireless
6.3.3 North America CAPEX Forecast by Mobile Technologies
6.3.4 North America CAPEX Forecast by Equipment Types
6.4 South America Mobile Market Landscape
6.4.1 America Movil
6.4.2 South America CAPEX Forecast by Mobile Technologies
6.4.3 South America CAPEX Forecast by Equipment Types
6.5 Africa & Middle East Mobile Market Landscape
6.5.1 MTN
6.5.2 Africa and Middle East CAPEX Forecast by Mobile Technologies
6.5.3 Africa and Middle East CAPEX Forecast by Equipment Types
6.6 Key Findings

Section 7.
COMPANY DIRECTORY

Section 8.
ACRONYMS
MOBILE INFRASTRUCTURE VENDORS
CAPEX MARKET FORECAST
SCOPE OF STUDY
SOURCES AND METHODOLOGY
NOTES

Tables
  • Total CAPEX by Region World Markets: 2003 to 2013
  • CAPEX by Radio Technologies World Market: 2003 to 2013
  • CAPEX by Equipment Type World Market: 2003 to 2013
  • Accumulative Total of Base Stations Global, by Technology: 2004 to 2013
  • CAPEX Percentage Split Global, 2003 to 2013
  • Mobile Subscriber Forecast by Technology World Market: 2003 to 2013
  • W-CDMA Trials and Commercial Deployments World Market: 4Q 2007
  • HSDPA Trials and Commercial Deployments World Market: 4Q 2007
  • HSUPA Trials and Commercial Deployments World Market: 4Q 2007
  • CDMA2000.EVDO Trials and Commercial Deployments World Market: 4Q 2007
  • CDMA2000.EVDO.RevA Trials and Commercial Deployments World Market: 4Q 2007
  • Mobile WiMAX Trials and Commercial Deployments World Market, 3Q 2007
  • Annual Revenue per User per Annum Asia-Pacific, 2003 to 2013
  • Total Aggregate Service Revenue per Annum Asia-Pacific, 2003 to 2013
  • Mobile Subscriber Number China Mobile: 2003 to 2007
  • Financial Position China Mobile: 2003 to 2007
  • Mobile Subscriber Number NTT Docomo: 2003 to 2007
  • Financial Position NTT Docomo: 2003 to 2007
  • Mobile Subscriber Number Bharti Airtel: 2003 to 2007
  • Financial Position Bharti Airtel: 2003 to 2007
  • CAPEX Forecast by Radio Technologies Asia-Pacific: 2003 to 2013
  • CAPEX Forecast by Equipment Type Asia-Pacific: 2003 to 2013
  • Annual Revenue per User per Annum Europe, 2003 to 2013
  • Total Aggregate Service Revenue per Annum Western Europe, 2003 to 2013
  • Total Aggregate Service Revenue per Annum Eastern Europe, 2003 to 2013
  • Mobile Subscriber Number Vodafone Group: 2003 to 2007
  • Financial Position Vodafone Group: 2003 to 2007
  • Mobile Subscriber Number France Telecom Group: 2003 to 2007
  • Financial Position France Telecom Group: 2003 to 2007
  • CAPEX by Radio Technologies Western Europe: 2003 to 2013
  • CAPEX by Equipment Type Western Europe: 2003 to 2013
  • CAPEX by Radio Technologies Eastern Europe: 2003 to 2013
  • CAPEX by Equipment Type Eastern Europe: 2003 to 2013
  • Annual Revenue per User per Annum North America, 2003 to 2013
  • Total Aggregate Service Revenue per Annum North America, 2003 to 2013
  • Mobile Subscriber Number Sprint Nextel: 2003 to 2007
  • Financial Position Sprint Nextel: 2003 to 2007
  • Mobile Subscriber Number Rogers Wireless: 2003 to 2007
  • Financial Position Rogers Wireless: 2003 to 2007
  • CAPEX by Radio Technologies North America: 2003 to 2013
  • CAPEX by Equipment Type North America: 2003 to 2013
  • Annual Revenue per User per Annum South America, 2003 to 2013
  • Total Aggregate Service Revenue per Annum South America, 2003 to 2013
  • Mobile Subscriber Number America Movil: 2003 to 2007
  • Financial Position America Movil: 2003 to 2007
  • CAPEX by Radio Technologies South America: 2003 to 2013
  • CAPEX by Equipment Type South America: 2003 to 2013
  • Annual Revenue per User per Annum Africa, 2003 to 2013
  • Total Aggregate Service Revenue per Annum Africa, 2003 to 2013
  • Annual Revenue per User per Annum Middle East, 2003 to 2013
  • Total Aggregate Service Revenue per Annum Middle East, 2003 to 2013
  • Mobile Subscriber Number MTN: 2003 to 2007
  • Financial Position MTN: 2003 to 2007
  • CAPEX by Radio Technologies Africa & Middle East: 2003 to 2013
  • CAPEX by Equipment Type Africa & Middle East: 2003 to 2013
Charts
  • Total CAPEX by Region, World Markets: 2003 to 2013
  • Capex by Radio Technologies, World Market: 2003 to 2013
  • CAPEX by Equipment Type, World Market: 2003 to 2013
  • Accumulative Total of Base Stations, Global, by Technology, 2004 to 2013
  • Mobile Subscriber Forecast by Technology, World Market: 2007 to 2013
  • CAPEX by Radio Technologies, Asia-Pacific: 2003 to 2013
  • CAPEX by Equipment Type, Asia Pacific: 2003 to 2013
  • CAPEX by Radio Technologies, Western Europe: 2003 to 2013
  • CAPEX by Equipment Type, Western Europe: 2003 to 2013
  • CAPEX by Radio Technologies, Eastern Europe: 2003 to 2013
  • CAPEX by Equipment Type, Eastern Europe: 2003 to 2013
  • CAPEX by Radio Technologies, North America: 2003 to 2013
  • CAPEX by Equipment Type, North America: 2003 to 2013
  • CAPEX by Radio Technologies, South America: 2003 to 2013
  • CAPEX by Equipment Type, South America: 2003 to 2013
  • CAPEX by Radio Technologies, Africa & Middle East: 2003 to 2013
  • CAPEX by Equipment Type, Africa & Middle East: 2003 to 2013
Figures
  • Unit Cost of Node B over Time Series
  • Emphasis of 3 Different Market Segments
  • Upcoming Mobile Network Architecture
  • Components in Modern Mobile Networks
  • Standard BTS Architecture
  • Difference between GSM Networks and WCDMA Networks
  • BSS Local Switching
  • CAPEX Forecast Methodologies
  • New Product Diffusion Profile
  • Subscriber Forecasting Methodology
  • Vodafone Mobile Roadmap
Report Code: RR-WCPX

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Number of Pages: 105
Number of Tables, Charts and Figures: 82
Deliverable Formats:
Price: Login
Release Date: 3Q 2008


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Related Press Releases:2008.07.07


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