Mobile & Wireless

Global wireless remains low in 09, but will rise in 2010

Enhancing the user experience will drive new network investments

by Sean Buckley

It’s hard to debate the impact the global economy is having on the telecom industry.

But even in the midst of one of the worst recessions, ABI Research believes that worldwide capex spending on wireless infrastructure will still see a year-over-year growth of 1.5 percent between 2009 through the end of 2010.

“It’s no surprise that 2009 will be a bad year for wireless infrastructure spending,” said ABI Research senior analyst Aditya Kaul. “But 2010 is likely to see a renewed focus on spending due to competitive pressures around improving capacity and coverage.”

Kaul adds that the 2009 wireless infrastructure capex spending picture is not all completely doom and gloom.

“The storm clouds of 2009 may actually have silver linings. Some segments may benefit as alternatives to traditional macro base station deployments: in-building wireless, femtocells, more energy efficient green base stations, infrastructure sharing, single RAN base stations, and more spectrally-efficient technologies.”

Despite the wireless operator’s lower spending patterns in 2009, overall capex spending reductions vary between regions. While Western Europe has slowed down spending patterns, wireless operators in North America, China and India are moving fast on their respective 4G and 3G migration strategies.

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