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> Mobile Capex Finally Shifts to 3G Technologies
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Mobile network operators are finally shifting their infrastructure capital spending away from GSM/EDGE technologies and toward W-CDMA and HSPA, with carriers in Western Europe leading the 3G charge, according to a new report from Heavy Reading.
"Over the last 18 months, HSPA has finally started to deliver on the mobile broadband performance promise of 3G," says Patrick Donegan, Senior Analyst with Heavy Reading. "There is genuine excitement on the part of users at being able to get out their laptops across extensive urban and suburban areas and consistently get at least 1 Mbit/s throughput over the air."
However, the slower-than-expected adoption of 3G by network operators could result in a squeeze on the technology's lifespan if so-called 4G technologies are developed and rolled out as currently planned, Donegan adds. "Just as W-CDMA is finally starting to establish itself as the preferred global platform for mobile broadband services, it faces the prospect of being made redundant by an acceleration in the time to market of the 4G mobile WiMax and LTE standards," he says. "These technologies are designed to be deployed in much larger spectrum channel widths and offer better spectral efficiency, higher throughput, and lower latency than anything W-CDMA/HSPA can support."
Still, Donegan predicts that capital spending on 3G infrastructure products will continue to grow through 2011, while capex on GSM/EDGE gear will begin to decline this year, after remaining stagnant since 2005.
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Posted: 2008-06-04 21:47:21
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