It is evident that competition is pushing more spending in the wireless communication sector. Everyone wants to spend more and get more bandwidth to customers. In a new report, IHS iSuppli, a global market research research provides some good insights on how this spending. Notice that even telecom companies in Africa are ramping up spending. Airtel continues to upgrade and the transition from 3G to 4G will surely make the equipment makers happy.
Wireless carriers in 2011 will double their spending increase on communications infrastructure equipment compared to 2010 as they rush to accommodate the explosive growth of data traffic, according to new IHS iSuppli research. Global spending on wireless infrastructure gear in 2011 is projected to rise by 7.7 % to reach $43.2 billion, up from $40.1 billion in 2010. This compares to growth of 3.8% in 2010, and a decline of 7.2% during the recession year of 2009.
Yet, although spending on infrastructure represents only one component of overall capital expenditures by carriers, the metric is a closely watched indicator of the direction that the wireless telecommunications industry is headed.
The other components of wireless capital spending, aside from infrastructure, include expenditures on software and network upgrades, as well as spending on non-infrastructure equipment such as cables, plants and site procurements. Total capital spending in 2011 by wireless carriers is anticipated to reach $134.6 billion, up 1.1 percent from $133.2 billion last year.
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