Skip to main content

Mobile Service Providers Invest in LTE Infrastructure

The spending on Long-Term Evolution (LTE) mobile network base stations will reach $12.3 billion in 2013, as service providers around the world update their infrastructure to fourth-generation wireless technology.

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.

4G 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," said Ying Kang Tan, research associate at ABI Research.

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.

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 percent 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 percent drop this year. 2014 should see rising wireless investment as 4G deployment and capacity build-up gain momentum.

Popular posts from this blog

AI Supercycle: Server Market Growth Surge

The worldwide server market has entered a new phase defined almost entirely by artificial intelligence (AI) infrastructure economics rather than traditional enterprise refresh cycles.   The latest market data shows robust growth and a structural shift in where value is created, who captures it, and which architectures are setting the pace for the next decade. IDC reports that worldwide server revenue reached a record $112.4 billion in the third quarter of 2025, representing a striking 61 percent year-over-year increase compared to the same quarter in 2024. For context, this means the market is adding tens of billions of dollars in incremental quarterly spend, driven overwhelmingly by AI and accelerated computing requirements.  IT Server Market Development Over the first three quarters of 2025, server revenue has already reached $314.2 billion, meaning the market has nearly doubled in size compared to 2024, underscoring how AI buildouts have compressed several years of exp...