CAMBRIDGE, Mass.-Worldwide mobile infrastructure capital expenditures are continuing to decline, according to Pyramid Research, which forecasts 2004 spending will reach $33.5 billion, down from a high of $38.5 billion in 2001.
Further, Pyramid expects GSM spending to fall from $21.5 billion in 2001 to $15 billion in 2004 as operators focus on building W-CDMA networks.
Despite the declines, Pyramid expects GSM and CDMA spending to be significant in China, India and the United States, with operators in those regions accounting for 49 percent of spending during the next five years.
“While positive indicators are numerous regarding mobile operator’s cap ex, infrastructure spending continues to decline,” said Taha Rangwala, author of the report. “The networks are established, and major expenditures will focus on upgrades and maintenance, as infrastructure equipment purchases will continue to decline for the foreseeable future.”
