Skip to main content

Service Providers Invest in Mobile Core Gateways

Demand for new smartphone-related applications is driving the continued investment in mobile network infrastructure. This is a global phenomenon that few analysts anticipated, due to the current worldwide economic downturn.

In fact, despite the trend of cut-backs in network equipment spending by most telecom service providers this year, purchases of mobile core gateway equipment -- specifically for packet core networks -- are set to increase 19 percent from 2011 to more than $1.2 billion in 2012, according to the latest market study by ABI Research.

"Although the 1Q 2012 spend for mobile core gateways only shows a 0.1 percent growth compared to 1Q 2011 we expect the last two quarters to be stronger as spend gets pushed towards end of the year," says Jim Eller, principal analyst for wireless infrastructure at ABI Research.

The main driver for the increase in mobile gateway spend is the deployment of fourth-generation (4G) LTE networks, which require Evolved Packet Core (EPC) equipment.

Mobile gateway spend for 4G networks will account for approximately 60 percent of the total in 2012.

Aditya Kaul, practice director of mobile networks says, "The recent network outages seen at O2 in the UK, Orange in France, T-Mobile and Verizon in the U.S. market are all related to issues in the mobile core."

The insatiable demand for mobile broadband data and smartphones is putting pressure on the scalability and reliability of mobile core elements, which will ultimately drive mobile network operators to upgrade their mobile core.

The LTE EPC spend consists of P-Gateway, S-Gateway, MME, and eHRPD equipment, which account for LTE EPC deployments in both WCDMA and CDMA networks.

The vendors benefiting from the increase in EPC spend include the five major wireless network equipment vendors (Alcatel-Lucent, Ericsson, Huawei, Nokia Siemens Networks, and ZTE), as well as router vendors such as Cisco Systems and Juniper Networks.

The Big Five will continue to dominate, although Cisco is gaining some new market share.

Popular posts from this blog

Climate Change Benefits from The Circular Economy

The COP26 Summit (in Glasgow, Scotland)  brought parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Meanwhile, the circular economy is a key sustainability strategy adopted by industry leaders in their efforts to achieve progress. While the circular economy is still in its infancy in terms of data and metrics, it's a growing phenomenon where technology sectors -- such as the Internet of Things (IoT) for asset tracking -- are set to grow rapidly within the next five years. Global technology intelligence firm ABI Research forecasts that the world will achieve over 10.5 percent circularity by 2030, as sustainability efforts and incoming legislation start to take effect. Circular Economy Tech Market Development "The circular economy is an often-misunderstood concept that goes much further than waste management and can become a blueprint for cities. It is a movement away from our take-make-waste economy

Guidance for Leading Digital Business Value Creation

In today's environment where business technology is a key enabler of competitive advantage, CEOs need to be sure that someone is confidently leading digital business growth across the organization. The default is the Chief Information Officer (CIO) role. According to the latest worldwide market study by Gartner, in order to accelerate business value creation, CIOs and other IT executives should focus on three key areas -- leading from anywhere, nurturing connections, and reaching beyond. Mbula Schoen, senior research director at Gartner , said that as organizations continue to emerge from the disruption of the COVID-19 pandemic, CIOs and IT executives will need to generate value in fundamentally new ways. Business Technology Market Development Gartner forecasts that by the end of 2022, the share of knowledge workers working remotely will increase to 47 percent -- that's up from 27 percent in 2019. However, simply moving from onsite to remote is not the destination but merely a

Business Technology for The Anywhere Workspace

The COVID-19 global pandemic fueled the trend of pushing executives outside of their comfort zone, while government-mandated lockdowns required their knowledge worker employees to work from home. Companies that previously avoided 'Flexible Working' models were forced to embrace the pervasive trend in a matter of weeks, as new remote working policies became a CHRO standard practice. As we enter 2022, more employers will empower their key employees to work wherever they desire and engage with customers whenever and however they prefer. Moreover, the ongoing transformation to an 'Anywhere Workspace' will drive strategic IT spending and advance cloud-based SaaS adoption. Business Technology Market Development Global enterprise IT spending is projected to total $4.5 trillion in 2022, an increase of 5.5 percent over 2021, according to the latest worldwide market study by Gartner. "Enterprises will increasingly build new technologies and software, rather than buy and imp