US Mobile Operator Capital Expenditure will Grow 2.1% in 2013 in Mixed Global Market, According to ABI Research

  US Mobile Operator Capital Expenditure will Grow 2.1% in 2013 in Mixed
  Global Market, According to ABI Research

Business Wire

SINGAPORE -- January 17, 2013

Worldwide mobile operator capital infrastructure expenditure in 2013 will
experience opposing forces from different regional markets. “In North America,
mobile carrier CapEx will grow 2.1% to US$ 13.4 billion as the accelerated LTE
equipment spend programs from AT&T, Verizon Wireless, T-Mobile, etc.
concentrate spending in 2013,” said Jake Saunders, VP and practice director of
core forecasting at ABI Research. “On the other hand, in Western Europe,
capital expenditure will contract -1.1%, as maturing networks, and economic
uncertainty, trim CapEx”.

Asia-Pacific has its LTE hotspots. Korea and Japan are rapidly acquiring LTE
subscribers; China has yet to award LTE licenses, while SE Asia countries are
starting to demonstrate some traction in LTE. India had awarded some LTE-TDD
licenses in early 2012 but a lack of affordable LTE-TDD capable handsets, and
high tariffs, has kept Indian LTE-TDD subscriber adoptions in check.

“Eastern Europe should show reasonable growth (2.4%) in CapEx that reflects
LTE coverage build-out by carriers, but also 3G capacity build-outs as 3G
subscriber adoption has gone past 41% penetration for the region,” commented
Aditya Kaul, mobile infrastructure practice director. Middle East, Africa, and
Latin America will show some growth in capital expenditure of around 1% to 3%.
Voice-centric coverage is largely complete in those regions. Some operators
are addressing 3G in-fill and mobile data capacity challenges but there has
not been the ‘data crunch’ as we have seen in Developed Markets.

As a result of these countervailing fiscal commitments, worldwide capital
expenditure is expected to contract by -7% to US$ 98.6 billion in 2013.
However, the commitments to LTE from an ever-expanding list of countries
should substantially boost overall mobile carrier CapEx, by 6%, to US$ 104.5
billion in 2014.

ABI Research’s study, “Mobile Operator CAPEX” Market Data focuses on the
regional and global mobile operator capital expenditure which includes base
station and core network spend. It is part of ABI Research’s Mobile Capex
( Database.

ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
thousands of decision makers through 70+ research and advisory services. Est.
1990. For more information visit, or call +1.516.624.2500.


ABI Research
Christine Gallen, +44.203.326.0142
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