The spending on Long-Term Evolution (LTE) base stations will hit US$ 12.3 billion in 2013 as countries around the world join the high-speed club. Membership is not exclusive to the developed economies as emerging markets close the digital divide by aggressive network roll-out. Some of these emerging market LTE deployments are government-sponsored initiatives as in Rwanda while others are private ventures as in Sri Lanka. LTE has helped to reverse the downward trend in RAN expenditure in Western Europe last year and will do the same in Eastern Europe, Latin America, and Middle East in 2013 and Africa in 2014.
“There are, however, differences in the type of capital expenditure (CapEx) incurred in different regions. Operators in the developed markets are already taking steps to upgrade their networks to LTE-Advanced this year. Going forward, amidst skyrocketing data traffic, they will also invest a larger proportion of their RAN spend on LTE small cells, which will yield significant savings on CapEx in addition to increased capacity for wireless operators,” noted Ying Kang Tan, research associate at ABI Research.
Besides tangible infrastructure, intangible LTE spectrum licenses also have cost operators dearly. For example, the 4G mobile spectrum license acquired by France’s SFR constituted 38.9% of its CapEx last year. Mobile carrier CapEx can be quite ‘lumpy’. 2013 will see a sharp reduction in China Mobile’s 3G investments in TD-SCDMA. In other markets, 3G equipment spend has already declined. “4G equipment spend is taking up some of the slack but there will still be a 6.0% drop this year,” commented Jake Saunders, VP and practice director of core forecasting. “2014 should see rising wireless investment as 4G deployment and capacity build-up gain momentum.”
ABI Research’s “Mobile Operator CAPEX” Market Data focuses on the regional and global mobile operator capital expenditure which includes base station and core network spend. It is part of ABI Research’s Mobile Capex Database.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
About ABI Research
ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.
ABI Research 是一家全球性的技术情报公司，拥有得天独厚的优势，充当终端市场公司和技术解决方案提供商之间的桥梁，通过提供独家研究和专业性指导，推动成功的技术实施和提供经证明可吸引和留住客户的战略，无缝连接这两大主体。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
Asia: +65 6950.5670