Wireless Carriers to Accelerate Communication Infrastructure Spending through 2011 - IHS
Tweet
Share
E-mail
Get Alerts IHS Hot Sheet
Join SI Premium – FREE
According to IHS (NYSE: IHS), wireless carriers are going to accelerate spending in 2011 on communications infrastructure equipment.
From a 3.8 percent increase in 2010, carriers are now expected to increase that amount by 7.7 percent, to $43.2 billion in 2011.
IHS notes 2011 will be a peak year for growth. Spending will still increase moving forward, but at a slower clip than in previous years.
"In developed nations, wireless carriers are wrestling with the thorny issue of exploding data traffic on overloaded networks, brought about by the huge appetite among consumers for high-bandwidth mobile data services such as video and web browsing," said Jagdish Rebello, Ph.D., senior director and principal analyst for communications and consumer electronics at IHS.
Though 4G spending will likely increase, most carriers are looking to bolster 3G and 3.5G networks in order to extend the life of their investments. IHS expects spending on 4G technology to increase, with 4G becoming the largest part of the wireless network by 2013.
Spending will be about the same in most developing markets, with the exception of India and China. India is expected to see accelerated spending, while China will see a slowdown.
Notable carriers on the move:
Also making a move Wednesday is Clearwire (Nasdaq: CLWR), now up nearly 10 percent.
From a 3.8 percent increase in 2010, carriers are now expected to increase that amount by 7.7 percent, to $43.2 billion in 2011.
IHS notes 2011 will be a peak year for growth. Spending will still increase moving forward, but at a slower clip than in previous years.
"In developed nations, wireless carriers are wrestling with the thorny issue of exploding data traffic on overloaded networks, brought about by the huge appetite among consumers for high-bandwidth mobile data services such as video and web browsing," said Jagdish Rebello, Ph.D., senior director and principal analyst for communications and consumer electronics at IHS.
Though 4G spending will likely increase, most carriers are looking to bolster 3G and 3.5G networks in order to extend the life of their investments. IHS expects spending on 4G technology to increase, with 4G becoming the largest part of the wireless network by 2013.
Spending will be about the same in most developing markets, with the exception of India and China. India is expected to see accelerated spending, while China will see a slowdown.
Notable carriers on the move:
Also making a move Wednesday is Clearwire (Nasdaq: CLWR), now up nearly 10 percent.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Enerflex director Fernando Assing to resign from board July 17
- Babcock & Wilcox to redeem $61.4M in senior notes in August
- Leqembi subcutaneous data shows similar efficacy to IV in Alzheimer's
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
