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

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without