China 3G buildout to drive telecom capex increase in Asia Pacific, says Pyramid Research
Despite an overall economic contraction, network operator spending on telecom equipment in the Asia-Pacific region will rise slightly over the next 24 months, driven primarily by deployment of 3G networks in China, according Pyramid Research.
Despite anticipated declines in GDP for most countries in the Asia-Pacific region, operators throughout the region have stuck to their overall investment plans, with 4G and national broadband network investments leading the agenda, noted Tae-Hyung Kim, analyst at Pyramid Research.
"Markets such as Japan, Singapore, and South Korea are seeing an ever-increasing appetite for higher-bandwidth applications on mobile networks and increasing mobile broadband adoption rates," Kim said. "On the fixed side, governments of these developed markets are pushing operators to improve fiber access to households. In fact, these governments view spending on telecommunication infrastructure as a prudent long-term investment."
China's telecom operators will show the world's largest capex spending increases in 2009, Kim said. "All three operators – China Mobile, China Telecom, and China Unicom – are not only extending their 2G infrastructure to rural areas but also earmarking tens of billions of dollars for their new 3G networks. These trends play to the advantage of Chinese vendors such as Huawei and ZTE."
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Despite anticipated declines in GDP for most countries in the Asia-Pacific region, operators throughout the region have stuck to their overall investment plans, with 4G and national broadband network investments leading the agenda, noted Tae-Hyung Kim, analyst at Pyramid Research.
"Markets such as Japan, Singapore, and South Korea are seeing an ever-increasing appetite for higher-bandwidth applications on mobile networks and increasing mobile broadband adoption rates," Kim said. "On the fixed side, governments of these developed markets are pushing operators to improve fiber access to households. In fact, these governments view spending on telecommunication infrastructure as a prudent long-term investment."
China's telecom operators will show the world's largest capex spending increases in 2009, Kim said. "All three operators – China Mobile, China Telecom, and China Unicom – are not only extending their 2G infrastructure to rural areas but also earmarking tens of billions of dollars for their new 3G networks. These trends play to the advantage of Chinese vendors such as Huawei and ZTE."
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