2011 to see rise in spending on infrastructure by wireless carriers (US)
The year of 2011 will witness the wireless carriers doubling their spending on communications infrastructure equipment in comparison to 2010. According to sources, in view of the tremendous growth of data traffic, apparently, there is a rush in a bid to accommodate it.
The projection points at a rise by 7.7 percent global spending on wireless infrastructure gear in 2011 to reach $43.2 billion. The previous year, it stood at $40.1 billion. In comparison, 2010 saw a 3.8 percent growth while recession impaired year of 2009 witnessed a slump of 7.2 percent.
As per the figures presented by the sources, this year will be characterized by a peak period of growth. In addition, wireless infrastructure spending stands to grow by the largest rate until 2015.
In a bid to lengthen the life of their investments on implementation of the currently prevalent 3G/3.5G technologies, a great many of the carriers in the United States, Canada, Europe, Australia, Japan and South Korea are seen to adopt a cautious approach in 2011 as they are focusing more on the procurement of 3G/3.5G equipments.
In the coming years, carriers in the developed nations are expected to deploy 4G with greater purpose. A greater portion of the total capital spending will be allotted to the next-generation technology, primarily to support mobile wireless access at extremely high data transmission rates.
2013 is touted to witness 4G networks accounting for the largest share of the wireless infrastructure market.
While in most of the developing countries, carriers are expected to maintain capital spending on infrastructure gear at close to the same rate as that witnessed in 2010. However, India stands to prove to be an exception in this regard. The carriers that turned up trumps in the wireless spectrum auctions the previous year are expected to be start investing in 3G networks this year.
China is another exception where capital expenditures by wireless operators are expected to take a backseat. Considerable portions of the 3G network laid out in the country have been given due completion. In addition, three main telecom companies in China have declared reduced capital expenditure plans for 2011.
Despite the fact that infrastructure spending correspond to only one part of the overall expenditures by carriers, the closely watched metric stands for a reliable pointer of the direction in which the wireless telecommunications industry is headed.
Expenditures on software and network upgrades in addition to spending on non-infrastructure equipment such as cables, plants and site purchases constitute the other components of wireless capital spending.
It is being anticipated that the total capital spending for the year 2011 by wireless carriers will touch $134.6 billion; a rise of 1.1 percent from $133.2 billion the preceding year.