Mobile Data Infrastructure Market Drop is Forecast
“Downturn in operator spending on infrastructure equipment will have a limited impact on tower owners and operators given the fact that the mobile data installed base is expected to maintain relatively steady growth over the next five years with existing infrastructure equipment remaining in place,” said Bob Perez, IMS Research.
Coincidentally, this economic downturn comes at a time when many operators are outlining their plans to either upgrade their existing 3G networks or migrate to next generation networks. Before the economic crash, many thought 2009 would be a year defined by aggressive expansion of mobile data networks and large investments in 4G, according to IMS.
Although the IMS Research report, “Mobile Broadband: 4G Network Evolution” forecasts a slowdown in 2009, a quick recovery is expected in 2010 on the heels of widespread 3G upgrades and next generation network investments.
The report forecasts that the installed base of mobile data users, however, will remain relatively insulated from the economic downturn and will achieve steady growth. The introduction of upgradeable base stations will also accelerate the eventual adoption of next generation network infrastructure equipment.
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