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Carrier consolidation to hit capex, says Pyramid Research

CAMBRIDGE, Mass.-Carrier consolidation will cost the North American market $2.5 billion in reduced capital expenses during the next four years, according to new numbers from Pyramid Research.

“Consolidation opens a significant opportunity for vendors to increase revenues by providing network management and optimization services-especially as operators must integrate networks and redeploy infrastructure within and outside their current network coverage,” said Taha Rangwala, a senior analyst with the firm. Rangwala expects “Cingular to redeploy roughly 25 to 30 percent of AT&T’s cellular infrastructure to expand coverage into new markets and use the remaining base stations to support existing subscribers and fill coverage gaps in key metro markets.”

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