Skip to main content

North American Telecom Infrastructure Investment

The economic outlook for the North American market may be unpredictable, but that hasn't halted the planned telecom infrastructure investment. As an example, some mobile network operators are already preparing their networks for next generation 4G service deployment.

"North American mobile cellular capital expenditure is expected to hold its ground in 2012 year-on-year, with expenditure of around $10 billion," said Jake Saunders, VP for forecasting at ABI Research.

In 2013, mobile capital expenditure is likely to surge by 4.9 percent to $10.5 billion -- as North American telecom service providers continue upgrading their networks.

Signs of these network infrastructure investment plans include:

In 2Q-2012, Verizon Wireless announced it had discontinued investment in the expansion and capacity enhancement of its 3G network as the operator has allocated those resources to building out its 4G LTE coverage.

On a year-on-year basis, capital expenditure should trend flat or slightly down. The operator is confident its 4G footprint will at least be equal to its 3G footprint by mid-2013.

T-Mobile USA announced that it will invest $4 billion in 2012 and 2013 to strengthen its 4G network, including the planned launch of LTE in 2013. Expenditures in 1Q-2012 were essentially neutral in 1Q-2012 due in part to these network modernization efforts.

AT&T is still spending substantially on wireline upgrades, but in 1Q-2012, wireless telecoms took 54 percent of its total CAPEX, up by $454 million YoY to $2.3 billion.

Sprint's wireless network upgrades -- to support 4G LTE -- are helping to drive up its capital expenditure commitments to $710 million in 1Q-2012, that's up by 58 percent YoY.

Some of the renewed commitment by the incumbents could be partially explained by Clearwire's activities. They had started off as a WiMAX 4G operator but has seized the LTE-TDD opportunity to introduce mobile broadband services.

The first phase of LTE overlay network build-up saw the installation of 8,000 sites in hot zones within urban centers -- as part of the company's strategy to provide capacity offload services to other operators. Clearwire expects CAPEX in 2012 will amount to $350 to 400 million.

Popular posts from this blog

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic