4G Dream of US Networks
Despite the clouded economic outlook of North America due to the uncertain European financial fundamentals in combination of US election year, mobile operators are busy putting in order their networks for 4G next generation services. Jake Saunders, VP for forecasting at ABI Research said “North American mobile cellular capital expenditure is expected to hold its ground in 2012 year-on-year, with expenditure of around US$ 10 billion”, he further added “In 2013, mobile capital expenditure is likely to surge 4.9% to US$10.5 Billion as North American operators continue upgrading their networks”. Signs of these spending plans include:
- In 2Q-2012, Verizon Wireless announced it had discontinued investment in the expansion and capacity enhancement of its 3G network as the operator has allocated those resources to building out its 4G LTE coverage. On a year-on-year basis, capital expenditure should trend flat or slightly down. The operator is confident its 4G footprint will at least be equal to its 3G footprint by mid-2013.
- AT&T is still spending to a large extent on wire line upgrades, but in 1Q-2012, wireless telecoms took 54% of its total CAPEX, up by US$ 454 million YoY to US$2.3 billion.
- Sprint’s wireless upgrades to support LTE are helping to drive up its capital expenditure commitments to US$ 710 million in 1Q-2012, up 58% YoY.
- T-Mobile is also planning to strengthen its 4-G network and has announced that it will invest US$ billion in 2012 and 2013. Expenditures in 1Q-2012 were essentially neutral in 1Q-2012 due in part to these network modernization efforts.
- Clearwire had started off as a WiMAX 4G operators but has seized the LTE-TDD opportunity to introduce mobile broadband services. The first phase of LTE overlay network build-up saw the installation of 8,000 sites in “hot zones” in urban centers as part of the company’s strategy to provide capacity offload services to other operators. Clearwire expects CAPEX in 2012 will amount to US$350 to 400 million.
ABI Research’s study, “Mobile Capital Expenditure Forecast: North America,” focuses on the North-American region and includes base station and core network data. These findings are part of ABI Research’s Mobile Capex Research Service which includes additional Competitive Analyses, Vendor Matrices, Market Data, and Insights.
ABI Research study on “Mobile Capital Expenditure Forecast: North America” provides an in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. These findings are a part of ABI Research Services.