Wireless carriers to up spend 8.3%.
Wireless infrastructure spending by operators is to rise 8.3% this year to $45.5bn, says IHS, driven by LTE.
2011 grew 7.7 % on 2010. It’s expected that next year through to 2016, spending growth will slow to 3% reaching $50bn in 2016.
LTE is for data, and data revenues now make up between 25% to 3 % of carriers’ total revenues, with the proportion expected to reach 50% by 2016 for many carriers in Europe, Australia, South Korea, Japan and North America.
Carriers are meeting resistance from customers and regulatory authorities monetise data traffic by prioritising data networks—while assigning low priority in video traffic from third-party content providers.
The bulk of carrier spending this year will continue to be on older 3.5G technologies, equivalent to some $34bn – the same as last year.
Spending on 4G, however, is up 132% this year to $8.6bn , with 4G expenditure projected to take majority share starting in 2013.
Carrier spending on 4G next year will hit $25.2bn, while expenditure on 3.5G will drop to $20.9bn.