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

How WLAN Transforms Industrial Automation

The industrial sector is on the eve of a wireless transformation, driven by an urgent demand for greater network capacity, reliability, and deterministic performance. Historically, manufacturers and mission-critical operations have relied on wired networks — favoring their predictability — because spectrum congestion in legacy 2.4GHz and 5GHz bands limited confidence in wireless for operational technology (OT) environments. However, with the introduction and rapid adoption of the 6GHz spectrum, compounded by significant advances in Wi-Fi standards, industrial facilities are now poised to embrace wireless LANs as the backbone for automation and digital innovation. Industrial WLAN Market Development Recent research from ABI Research forecasts that over 70 percent of industrial-grade wireless LAN access points (WLAN APs) shipped in 2030 will support the 6GHz band. This is a leap from 2 percent in 2023, highlighting a rapid and profound technological shift. The market for ruggedized indust...