| |
3G to enjoy widespread deployment despite decline in mobile infrastructure
spending
January 23, 2003
Despite a 22% decline in spending in 2002, the demand for wireless
and mobile network infrastructure remains strong, driven by the
continued interest in mobile solutions among corporate users and
consumers. IDC expects annual spending on wireless and mobile network
infrastructure to grow from $38.3 billion in 2002 to nearly $49
billion in 2007. Although the idea of 3G mobile networks has been
under attack over the past year, 3G networks will enjoy widespread
deployment over the coming years.
"The essential rationale for deployment of 3G networks – gaining
spectrum efficiencies, easing network capacity constraints, lowering
operating costs, and expanding revenue opportunities through provisioning
of data services – remains intact," said Shiv K. Bakhshi, Ph.D.,
research manager for the Wireless and Mobile Network Infrastructure
program.
The rising popularity of MMS and picture messaging as well as the
proliferation of public WLANs and hotspots will serve to legitimize
the culture of data consumption in a mobile environment, and spur
deployment of network infrastructure, Bakhshi added.
While wireless data services will continue to be the focal point
of attention, traditional voice services will attract a fair share
of network infrastructure spending in both developed and developing
markets. In developed economies, voice-related spending will be
driven by the increasing salience of Quality of Service issues related
to voice offerings; in developing economies, it will be driven by
the massive pent-up demand for voice connectivity. The so-called
2.5 mobile networks will enjoy a longer shelf life than originally
argued by infrastructure suppliers.
IDC's recently released study, Worldwide Wireless and Mobile Network
Infrastructure Forecast and Analysis, 2002-2007 (IDC #28702), forecasts
the wireless and mobile cellular infrastructure market for the period
2003-2007. The study breaks out the network infrastructure spending
by air-interface standards, geography and mobile generation.
|