Skip to main content

4G Investment by Asia-Pacific Mobile Operators

Back in 2002, mobile network operators in the Asia-Pacific region trailed behind their North American and European counterparts -- in terms of planned fourth-generation service development. Fast forward to the present day and the situation is very different.

According to the latest market study by ABI Research, Out of 110 mobile networks, 10 operators (9 percent) have commercial 4G LTE networks up and running. Another 58 (53 percent) either have specific plans to roll out LTE or are conducting trials.

"We estimate total Asia-Pacific mobile capital expenditure to reach $53.3 billion by the end of 2012," says Jake Saunders, vice president of forecasting at ABI Research.

About 62 percent of the capital expense is still earmarked for radio access network deployment. Other key investment areas include EPC and gateway upgrades to the core network at 9 percent -- as well as improving in-building wireless coverage into dense urban centers at 5.7 percent.

Evidence for the investment can be seen in several markets:
  • In China, 4G licenses have yet to be issued, but that has not stopped China Mobile from making plans. In 2Q-2012, China Mobile announced that it had completed a six city TD-LTE trial. The 655 million subscriber operator plans to ramp up its TD-LTE base station count to over 20,000 TD-LTE base stations by December and 200,000 by 2013.
  • China Unicom is focusing on accelerating its 3G network build-out, optimizing 2G network coverage, and expediting indoor coverage.
  • China Telecom is focused on implementing telecom cloud and value-added services projects.
  • Heavy RAN investment has been taking place in India. A number of operators are jockeying for position in a very competitive marketplace. On April 10, Bharti Airtel became the first operator to launch 4G LTE services in India, in Kolkata. Bharti Airtel hopes to launch 4G services in Bangalore before June 2012. Equipment spend is not just occurring in 4G.
  • The Indian operator, Idea, has continued to roll out 2,270 2G cell sites and 1,176 3G cell sites in the past year.
  • Southeast Asia has seen a strong commitment to 4G, with commercial networks up and running in Malaysia (likely WIMAX over LTE), Singapore, and the Philippines.

Popular posts from this blog

The Billions Bet on Tentative AI Demand

Gartner's latest worldwide IT spending forecast exposes a trend every CIO has already felt in budget negotiations. Total spending will climb 14.2 percent in 2026, reaching $6.37 trillion. It seems that the IT infrastructure market is simply having a strong year. However, the more useful insight is how unevenly that growth is distributed. The Headline Number vs. The Real Story Data center systems and infrastructure as a service (IaaS) are absorbing capital at a pace several multiples faster than devices, communications services, and traditional IT services. This is not incremental growth spread across a healthy portfolio. It is a wholesale reallocation of enterprise technology budgets toward AI infrastructure, made on the expectation that demand for AI workloads will justify the outlay before that demand has been fully proven. Where the Money is Going Data center systems are forecast to grow 62.5 percent in 2026, that's up from 51.6 percent growth in 2025, reaching $822 billion....