Wireless Operators Rapidly Building Next-Gen Networks

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Mobile operators will create their next generation networks using a range of wireless broadband and cellular technologies, including W-CDMA, WiFi, and WiMAX, says a new report by Infonetics Research. And they’re moving fast. According to the study, the 18 North American, European, and Asia Pacific carriers interviewed spent an average of US$2.9 billion in 2005 on next-gen mobile and wireless broadband equipment, and will spend US$4.1 billion in 2007, a 41% increase.

Mobile users want to replicate their wireline broadband experience on the go, driving 3G uptake. This will push carriers to spend a healthy proportion of their next gen mobile and wireless broadband capex on upgrading from 2.5G to 3G base station systems.


“The range of available applications accessible via a mobile handset is going to rapidly expand over the coming years,” said Richard Webb, directing analyst at Infonetics Research. “For example, most of our respondents offer mobile/wireless VPN services by 2007, interactive gaming is offered by 83% of respondents by 2007, and caller ID, unified and multimedia messaging, and video download/playback all grow to 72% by next year. Not surprisingly, IP-based multimedia and video services are expected to be the bedrock of future revenue growth.”