Need advice? Call our experts free on
0800 090 1342
IHS says super-fast mobile broadband spending to grow 18-fold
Investment in Long-Term Evolution technology is set to reach .9 billion by 2014.
The telecoms analyst noted the widespread deployment of Long-Term Evolution (LTE) technology has kicked off in North America and Europe in 2011 as carriers look to roll out 4G across their networks over the next three years.
As a result, worldwide investment in LTE will rise from .5 billion (£917 million) in 2010 to an estimated .9 billion in 2014, the report claimed. This represents an 18-fold expansion and a compound annual growth rate of 107.5 per cent, figures the company describe as "spectacular".
The US and Canada are expected to continue being the biggest players in funding for the programme of infrastructure upgrades until the end of this year, when spending will ramp up "considerably" in other regions. This will result in North America's influence sliding to less than a fifth of total expenditure in the coming years.
Jagdish Rebello, senior director and principal analyst for communications and consumer electronics at IHS, noted the migration to 4G will not happen overnight and that network operators will typically have to provide a range of air interface services simultaneously.
"In most cases, carriers will need to offer 2.5G, 3.5G and 4G technologies in order to support all customers and roaming customers," he said.
"As a result, semiconductor suppliers must focus on developing effective infrastructure solutions that not only meet the current needs of carriers but also achieve alignment with the 3G/3.5G technology migration paths of the carriers to 4G."
The predictions come after Ofcom announced the first UK 4G mobile auction is set to take place in the opening quarter of 2012. Service providers will have the chance to bid for chunks of the 800MHz and 2.6GHz spectrum bands.
Ofcom is aiming for next-generation mobile broadband coverage to approach existing levels of 2G signal by the end of 2017.