Infrastructure Capex Spending to Boom in Asia-Pacific Region - report

date: December 19, 2001

In a new Report, "Infrastructure Capex in the Asia-Pacific Region," the Yankee Group has published an updated forecast and analysis of wireless mobile infrastructure capex spending and trends in the Asia-Pacific region. With capex projections for the region as a whole and segmented by major technologies such as 3G, the Report also sheds light on divergent capex trends in key Asian markets.

The Yankee Group projects total wireless mobile infrastructure including capex in the region to rise to US$48.66 billion by 2006, at a CAGR of 4.54%. Of this total, the key element that represents the market potential for major infrastructure vendors is the electronics component, which is projected to grow from US$19.07 billion in 2001 to US$32.22 billion in 2006. The proportion of electronics to total capex should rise from 51.15% in 2001 to 66.23% in 2006. The biggest market opportunity for infrastructure vendors remains in GSM and its migratory generics, which will account for nearly 90% of all electronics capex by 2006.

According to Shiv Putcha, an analyst for the Yankee Group's Wireless/Mobile Asia-Pacific research and consulting practice, "The Asia-Pacific region is poised for significant growth in wireless services, with 627 million subscribers projected by 2005, and the clear winners in the 3G migration race are W-CDMA and cdma2000. With over 41% of global infrastructure capex by 2006, the Asia-Pacific region will be firmly established as the largest mobile infrastructure market in the world."

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