IDC: Wireless Capex to Rise

Wireless and mobile network infrastructure spending is down but not out, says IDC

January 22, 2003

1 Min Read

FRAMINGHAM, Mass. -- Despite a 22% decline in spending in 2002, the demand for wireless and mobile network infrastructure remains strong, driven by the continued interest in mobile solutions among corporate users and consumers. IDC expects annual spending on wireless and mobile network infrastructure to grow from $38.3 billion in 2002 to nearly $49 billion in 2007. Although the idea of 3G mobile networks has been under attack over the past year, 3G networks will enjoy widespread deployment over the coming years. "The essential rationale for deployment of 3G networks -- gaining spectrum efficiencies, easing network capacity constraints, lowering operating costs, and expanding revenue opportunities through provisioning of data services -- remains intact," said Shiv K. Bakhshi, Ph.D., research manager for the Wireless and Mobile Network Infrastructure program. The rising popularity of MMS and picture messaging as well as the proliferation of public WLANs and hotspots will serve to legitimize the culture of data consumption in a mobile environment, and spur deployment of network infrastructure, Bakhshi added. While wireless data services will continue to be the focal point of attention, traditional voice services will attract a fair share of network infrastructure spending in both developed and developing markets. In developed economies, voice-related spending will be driven by the increasing salience of Quality of Service issues related to voice offerings; in developing economies, it will be driven by the massive pent-up demand for voice connectivity. The so-called 2.5 mobile networks will enjoy a longer shelf life than originally argued by infrastructure suppliers. IDC

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