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Wireless spend forecast to return to growth

Alex Scroxton

Increased deployment of 4G networks in the coming months will reverse two years of declining revenues in the wireless infrastructure market, according to stats from analysts at iSuppli.

Global capital spending will reach $40.3bn (£25.8bn) in 2011, up 6.7% from 2009, when the market declined 5.7%, said iSuppli. It is currently forecast to slip a further 2.3% this year.

Senior director and principal analyst for wireless research at iSuppli, Jagdish Rebello, hailed "renewed commitment within the wireless industry to move on expansion plans that had been delayed or put on hold because of the global recession".

"Wireless carriers in industrialised countries will start to deploy 4G in order to attain faster speeds and to unclog the heavy data traffic generated by the exploding use of smartphones," said Rebello, adding that this spend was set to continue through 2014.

Early figures from iSuppli back up growing suggestions that Long Term Evolution (LTE) will become the dominant technology for wireless, with WiMAX relegated to a niche role.


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