Skip to main content

Mobile Service Provider Investment will Shift in 2015

As we look toward 2015, we'll see signs that the mobile service provider sector will start to shift its investment budget into new technologies. The 4G Americas organization says Software-Defined Networking (SDN) and Network Functions Virtualization (NFV) each offer an opportunity for expanded network flexibility and capacity, while also enabling the reduction of operating and capital expenses.

By utilizing more off-the-shelf bare metal hardware and open source-based software solutions, they're going to be in a much better position to revolutionize mobile networking infrastructure optimization.

According to the latest global market study by ABI Research, the total worldwide wireless network operator capital investment (CAPEX) budget will increase by 5.9 percent by the end of 2014 -- that's a slower rate than 2013.

The investment will reach $185.5 billion as large capital expenditure is expected in developing regions of Latin America, Africa, and Asia-Pacific.

ABI Research expects that radio access networks (RAN) and core networks will continue to represent significant portions of equipment spend.

The spending on macrocell radio access network (RAN) is expected to reach $37 billion by the end of 2014, while spending on small cell RAN will reach $2.1 billion. On the other hand, core mobile network infrastructure spending will continue to drop by 0.1 percent.

"In mature markets, a growing proportion of equipment spend is geared towards small cell and Wi-Fi hotspots installation, as mobile device usage in dense urban areas increases," said Lian Jye Su, research associate at ABI Research.

ABI believes that new equipment spend on microwave backhaul and in-building wireless networks will increase by 40 percent and 14 percent, respectively, by the end of 2014.

Meanwhile, ABI Research says that mobile service provider operating expenditure will continue to rise, but at a smaller rate compared to previous years.

In some cases, mobile network operators are also reducing their operating cost through tower outsourcing agreements. As an example, MTN Nigeria transferred its tower business to IHS and allowed them to have full control over 9,151 towers.

At the same time, Bharti Airtel sold 3,500 towers to Helios Towers, raising $2 billion in the sale. The outsourcing of tower maintenance allows operators to focus on their core businesses, while tower companies will be able to achieve economies of scale through the large number of towers they acquired.

Popular posts from this blog

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

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

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