Wireless operator Capex (capital spending) is expected grow at 5.9 percent in 2014, a slower rate than 2013.
The growth driver will be developing regions of Latin America, Africa, and Asia-Pacific, said ABI Research.
Radio access networks (RAN) and core networks will continue to represent significant portions of telecom equipment spend in 2014.
The spending on macrocell RAN is expected to reach $37 billion by the end of 2014, while spending on small cell RAN will reach $2.1 billion. On the other hand, core network spending will continue to drop by 0.1 percent.
“In mature markets, a growing proportion of equipment spend is geared towards small cell and Wi-Fi hotspots installation, as mobile device usage in dense urban areas increases,” said Lian Jye Su, research associate of Core Forecasting at ABI Research.
Equipment spend on microwave backhaul and in-building wireless will increase 40 percent and 14 percent, respectively by the end of 2014.
Meanwhile, mobile operators’ operating expenditure will rise, but at a smaller rate compared to previous years.
Several mobile operators are reducing their operating cost through tower outsourcing agreements. MTN Nigeria transferred its tower business to IHS and allowed IHS to have full control over 9,151 towers. Bharti Airtel sold 3,500 towers to Helios Towers, raising $2 billion in the sale.
Baburajan K
editor@telecomlead.com
